Central Florida Real Estate Blog

On January 12, 2010, the MFRMLS (My Florida Regional MLS) which covers most of the Central Florida area released the December 2009 Real Estate Sales & Inventory Report for the Orlando Regional Area (ORRA). The numbers look quite positive and we will have to see if this is the start of a significant turn in the market.  

The number of home sales that closed in the month of December decreased slightly to 2,272 units. This brings the year’s total to 23,705, while a total of only 14,880 homes had changed hands by this time last year. Of those December sales, 67.37% percent of the homes were either bank-owned (44%) or short sales (23%). The remaining “normal” sales made up 32.63% percent. While inventory is slowly being absorbed, there still is over 16,500 active homes available in the marketplace. MFRMLS currently shows a 7.3 month supply of inventory or (8,163) units. But in my opinion these numbers are significantly distorted due to the large number of pending short sales which will most likely reenter the active inventory, or end up in foreclosure.

The current average list price of a home has increased 6.8% from November to December, but is still down 20.4% from December '08 to December '09.

In regards to the average sale price of a home in the Orlando Region, we saw a modest increase of 5.7% from November  '09 to December '09. This is a very positive indicator. But, over the last 12 months, values have still declined 19.6%, or approximately 1.63% per month. On a $200,000.00 property, this means a home has lost about $3,2600.00 per month in value. Also consider the dynamic between Sellers and Buyers during the negotiating process. As of January '09, Buyers were negotiating an average of 7% off the asking price. As of the end of December '09, that number had dropped to 6%, most likely meaning Sellers are getting much more realistic about the listing price of their homes.

The number #1 selling price range in the Orlando Region is still the $1.00-$49,900.00 range making up over 15.8% of the yearly sale. In this category year-to-date, there has been over 3,764 homes sold. Furthermore, the $0.00-$100,00.00 range accounted for 37.01% of the sales, while the $100,000-$200,000.00 range accounted for 38.67%. Lastly, the $200,001-$300,000.00 range accounted for another 15.01% of sales. Collectively year-to-date, the $0-$300K range made up almost 91% of all sales in the area. 

Where is the market heading from here? It's anyones guess. But analyst are predicting significant turmoil in the Commercial sector which is likely to add increased pressure across the board. The biggest challenge is still in the residential lending markets. Until we see a thawing in the credit markets, its unlikely we will see the surplus of inventory get absorbed, thus allowing prices to stabilize and recover.

If you would like a full copy of the Orlando Regional Sale & Inventory Report, please email joe@rockspringsrealty.net and we will email you a copy at no charge or obligation. 

Rock Springs Realty is a full-service Real Estate Brokerage working with Buyer, Seller, and Investors throughout the Central Florida Area. We cover all areas of Lake, Sumter, Orange, Seminole, Osceola, and Volusia Counties. Our sales staff has extensive experience Buying and Selling REO (Bank Owned Foreclosures) properties and welcomes the opportunity to discuss your real estate needs. You can reach us toll free at (877) 333-2811 or on the web at www.rockspringsrealty.net

P.S. - If you would like a free list of bank-owned foreclosure properties in your area, please contact us at the toll free number and we will forward a detailed list with no obligation.

Best Regards,
Joe Bornstein, Broker/Owner
Rock Springs Realty, LLC
3780 Rochelle Lane
Apopka, FL 32712