Central Florida Real Estate Blog

On October 13, 2009, MFRMLS (My Florida Regional MLS) which covers most of the Central Florida Region released the September 2009 Real Estate Sales & Inventory Report for the Orlando Regional Area (ORRA). Unfortunately, the statistics are virtually unchanged from August '09. It's anyones guess whether we are leveling off & stabilizing, or if we might be nearing the bottom of this Buyers market.

The number of home sales that closed in September increases slightly to 2,158. While inventory is being absorbed, there still is over 16,000 homes still on the market. MFRMLS currently shows a 7.8 month supply of inventory, but these numbers are significantly distorted due to the 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 declined 1.1% from August to September and is down 29.3% from September '08 to September '09.

In regards to the average sale price of a home in the Orlando Region, we saw a decline of 1.2% from August to September. From September '08 to September '09, the decline has been over 29.4%, or approximately 2.45% per month. On a $200,000.00 property, this means your home is losing about $4,900.00 per month in value. Also consider the dynamic between Sellers and Buyers during the negotiating process. As of January '09, Buyers were negotiating on average 7% off the asking price. As of September '09, that number had dropped to 6%, most likely meaning Sellers are getting much more realistic about the listing price of their homes. If you must sell a home, don't wait unless you have a few years. Since no one know how much further prices will fall until we see the bottom, and with an average depreciable value of $5,000.00 per month, getting your home sold quickly is the only logical step.

The number #1 selling price range in the Orlando Region is the $1.00-$49,900.00 range making up over 15% of the yearly sale. In this category year-to-date, there has been over 2,500 homes sold, WOW! Furthermore, the $0.00-$100,00.00 range accounted for 36.22% of the sales, while the $100,000-$200,000.00 range accounted for 38.62%. Lastly, the $200,001-$300,000.00 range accounted for another 15.82% of sales. Collectively year-to-date, the $0-$300K range makes up over 90% 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. Hopefully we will see the Feds extend & possibly expand the First-Time Homebuyers credit. But the biggest challenge is still the residential lending markets. Until dollars start to flow, we will not 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 in the REO (Bank Owned Foreclosures) sector 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