Central Florida’s housing market: Median sales prices up in August 2016

Central Florida’s housing market reported more closed sales and higher median prices in August, according to the latest data released by Florida Realtors.

Local closed sales of existing single-family homes totaled 3,150 last month, up 5.5 percent from August 2015. Statewide, closed sales of single-family homes statewide totaled 25,070 last month, up 8.2 percent from August 2015.

“A continued lack of inventory – particularly in the mid-$200,000 and under range – is creating obstacles for many buyers who are trying to enter Florida’s housing market,” said 2016 Florida Realtors President Matey H. Veissi in a prepared statement.

Statewide inventory was at a 4.2-months’ supply in August for single-family homes and at a 5.8-months’ supply for townhouse-condo properties.

“Rising median prices also may be an inhibiting factor for these would-be homeowners; however, the uptick in prices could persuade sellers that now is the time to list their properties for sale, which in turn may help ease the tight supply in many areas,” said Veissi.

The median sales price for a single-family home in Central Florida was $229,000 in August, up 13.4 percent from the year-ago period, and higher than the statewide median price of $225,000.

For townhomes and condos, the local median sales price was $130,000 in August, up 13.3 percent from the same month last year, lower than the statewide median of $160,000. There were 854 condos and townhomes sold last month in the region, up 4.9 percent for the year-ago period; and 9,484 townhouse-condo sales closed statewide last month, up 3.3 percent compared to August 2015.
In August, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 57th month in a row.

The national median sales price for existing single-family homes in July 2016 was $246,000, up 5 percent from the previous year; the national median existing condo price was $228,400, according to the National Association of Realtors.

“Closed sales of single-family homes in Florida were up by 8.2 percent year-over-year in August, effectively erasing all of the losses from July,” said Florida Realtors Chief Economist Brad O’Connor in a prepared statement. “August’s gains were broad-based, with 20 of Florida’s 22 metro areas experiencing a year-over-year increase in sales. - Susan Lundine, Managing Editor, Orlando Business Journal

Orlando houses sell at fastest clip since 2006

Indecisive home buyers in the Orlando area were left behind last month as houses sold faster than in a decade, a new report shows.

Orlando-area houses that sold during August landed a contract within an average 56 days of hitting the market — the shortest sales period since May 2006, when the real estate bubble was about to burst.

"There are less homes on the market, and people are still looking. The demand is still high," said Caroline Moffitt, an agent with Keller Williams Heritage, based in Altamonte Springs. "It makes for a good market for sellers."

A year ago, houses took an average of two weeks longer to sell than in August, according to reports from Orlando Regional Realtor Association, which looks at sales mostly in Orange and Seminole counties. During the depths of the recession in 2008, Orlando houses took more than twice as long to sell as they did last month.

The late summer buying season in Orlando brought increased activity with 3,429 houses selling in August — up 2 percent from a month earlier and up 7.3 percent from a year earlier. Housing supply shrank too, dwindling to three months worth of inventory from 3.2 months in July and from 3.6 months a year before, the association's monthly sales report shows.

"There were 21 percent fewer single-family homes listed below $300,000 available for purchase than this month last year," said Lazenby, president of the association. "The lack of available options is pushing buyers to take advantage of the current low interest rates and choose more expensive properties they might not otherwise be able to afford with higher rates."

Lazenby underscored the market's bifurcation by pointing to a supply of just 1.98 months for houses priced under $300,000. Buyers don't begin to realize the benefits of a more balanced market — with closer to a six-month supply of listings — until they look at houses priced higher than $400,000, he added.

Buyers had to jump faster for contracts in August, but, unlike the heated market a decade ago, they benefited from relatively flat prices.

Typically the summer buying season peaks in July, with families positioning themselves for the new school year, but this year, median prices topped in June at $207,000 for the core Orlando market. In August, median prices held at $205,990, which was flat from a month earlier. Compared with a year ago, prices rose 13.8 percent.

Mary Shanklin, Reporter - Orlando Sentinel

Uptick in Home Refinancing Driven by Lower U.S. Mortgage Rates

Freddie Mac's latest Primary Mortgage Market Survey is reporting this week that the average fixed mortgage rate in the U.S. is moving slightly lower for the week helping to spur ongoing refinance activity.

Sean Becketti, chief economist of Freddie Mac, "The 30-year fixed-rate mortgage fell 2 basis points to 3.44 percent this week. As mortgage rates continue to range between 3.41 and 3.48 percent, many are taking advantage of the historically low rates by refinancing. Since the Brexit vote, the refinance share of mortgage activity has remained above 60 percent."

Freddie Mac News Facts:

• 30-year fixed-rate mortgage (FRM) averaged 3.44 percent with an average 0.6 point for the week ending September 8, 2016, down from last week when it averaged 3.46 percent. A year ago at this time, the 30-year FRM averaged 3.90 percent. 
• 15-year FRM this week averaged 2.76 percent with an average 0.5 point, down from last week when it averaged 2.77 percent. A year ago at this time, the 15-year FRM averaged 3.10 percent. 
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.81 percent this week with an average 0.4 point, down from last week when it averaged 2.83 percent. A year ago, the 5-year ARM averaged 2.91 percent. 

WPJ Staff - World Property Journal