The March 2013 overall median price of $140,000 is 21.74 percent above that of March 2012 ($115,000) and 5.26 percent above that of February 2013 ($133,000). Orlando’s median price has risen almost 30 percent [...]]]> The median price of existing homes sold in Orlando during the month of March jumped more than 20 percent over March of last year, caused in part by a nearly 50 percent increase in the number of non-distressed “normal” home sales, reports the Orlando Regional REALTOR® Association.

The March 2013 overall median price of $140,000 is 21.74 percent above that of March 2012 ($115,000) and 5.26 percent above that of February 2013 ($133,000). Orlando’s median price has risen almost 30 percent in the 15 months since January of 2012.

“Normal sales traditionally carry a higher price tag than foreclosures and short sales,” explains ORRA Chairman Steve Merchant. “For example, in March the median price for normal sales is $173,590 while the median for foreclosures is $96,000 and for short sales is $110,000.”

In addition to the overall median increase, each individual sales type experienced a year-to-year median price increase in March, with foreclosures leading the way with a 15.73 percent jump. The median price of short sales increased 7.84 percent; normal sales increased 11.99 percent.

Completed Sales

Members of ORRA participated in the sales of 2,605 homes (all types combined) that closed in March 2013, an increase of 6.98 percent compared to March 2012 and an increase of 12.43 percent compared to February 2013.

Single-family home sales increased 9.20 percent in March 2013 compared to March 2012, while condo sales increased 4.29 percent.

Compared to March of 2012, the number of short sales (566) decreased 29.86 percent and the number of foreclosures (556) decreased 12.30 percent. The number of completed traditional sales (1,483), however, is a 49.20 percent increase compared to last year.

In March, short sales and foreclosures made up 43.07 percent of the entire sales pie, while normal sales made up 56.93 percent. Last year in March, those percentages were 59.18 percent and 40.82 percent, respectively.

Homes of all types spent an average of 80 days on the market before coming under contract in March 2013, and the average home sold for 95.96 percent of its listing price. In March 2012 those numbers were 97 days and 94.94 percent, respectively.

The average interest rate paid by Orlando homebuyers in March, 3.65 percent, marks the first increase since April 2012. Last month, homebuyers paid an average interest rate of 3.21 percent; this month last year, homebuyers paid an average interest rate of 3.65.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 8,799. The number of pending sales in March 2013 is 9.74 percent lower than it was in March 2012 (9,748) and 0.29 percent lower than it was in February 2013 (8,825).

Short sales, which take much longer to process from contract to close, made up 60.67 percent of pending sales in March 2013. Normal properties accounted for 26.92 percent of pendings, while bank-owned properties accounted for 12.41 percent.

Inventory

The number of existing homes (all types combined) available for purchase in Orlando is continuing a steady tumble that began back in July 2010 at 16,563 and now rests at 6,937. In March 2013, inventory was 19.95 percent less than it was in March 2012.

The inventory of single-family homes is down by 22.53 percent when compared to March of 2012, while condo inventory has decreased by 7.29 percent.

Current inventory combined with the current pace of sales created a 2.66-month supply of homes in Orlando in March. There was a 3.56-month supply in March 2012 and a 3.10-month supply last month.

Affordability

The March affordability index is 223.58 percent, a decrease of 25 percentage points from February’s index of 248.38 that is attributed in part to this month’s jump in both the median price and the interest rate. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.)

Buyers who earn the reported median income of $54,986 can qualify to purchase one of 3,594 homes in Orange and Seminole counties currently listed in the local multiple listing service for $313,017 or less.

First-time homebuyer affordability in March decreased to 158.99 percent from last month’s 176.63 percent. First-time buyers who earn the reported median income of $37,390 can qualify to purchase one of the 2,529 homes in Orange and Seminole counties currently listed in the local multiple listing service for $189,202 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando were up 4.29 percent in March, with 413 sales recorded in March 2013 compared to 396 in March 2012.

The most (115) condos in a single price category that changed hands in March were yet again in the $1 – $50,000 price range and accounted for 27.85 percent of all condo sales.

Orlando homebuyers purchased 234 duplexes, town homes, and villas in March 2013, which is a 4.88 percent decrease compared to March 2012. Most (31) fell within the $160,000 – $180,000 price range category.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in March were up by 1.41 percent when compared to March of 2012. Throughout the MSA, 3,174 homes were sold in March 2013 compared with 3,130 in March 2012. To date, sales throughout the MSA are 7.59 percent above this time last year.

Each individual county’s monthly sales comparisons are as follows:

• Lake: 13.96 percent above March 2012 (506 homes sold in March 2013 compared to 444 in March 2012);
• Orange: 0.51 percent above March 2012 (1,589 homes sold in March 2013 compared to 1,581 in March 2012);
• Osceola: 14.36 percent below March 2012 (501 homes sold in March 2013 compared to 585 in March 2012); and
• Seminole: 11.15 percent above March 2012 (578 sold in March 2013 compared to 520 in March 2012).

According to the brokerage, home sales rose 25 percent month-over-month in March, reflecting the normal spring spike that occurs every year. On a year-over-year basis, however, sales were up just 0.9 percent—the smallest gain in 14 months.

Ten of the 19 markets tracked by Redfin saw sales increase year-over-year, one fewer than February. All 19 [...]]]>

The seasonal surge in home sales combined with another drop in listings to further drive up prices in March, Redfin observed in its latest Real-Time Price Tracker.

According to the brokerage, home sales rose 25 percent month-over-month in March, reflecting the normal spring spike that occurs every year. On a year-over-year basis, however, sales were up just 0.9 percent—the smallest gain in 14 months.

Ten of the 19 markets tracked by Redfin saw sales increase year-over-year, one fewer than February. All 19 markets posted month-over-month improvements.

Home prices also saw a nice boost, growing 6.2 percent from February and 15 percent from March 2012. Eighteen of the 19 markets measured reported monthly and yearly increases, with Long Island being the only exception.

“Beyond the obvious attraction of great weather and beautiful beaches, there are two factors that make Florida real estate an especially good value for Canadians,” says Jack Ablin, BMO’s chief investment officer. “The first is that … the median priced home in Florida is nearly half than that in Canada. At the same time, the [...]]]> According to a report by BMO Financial Group, Florida’s housing market is on the rebound and Canadian Snowbirds are playing an important role in its recovery.

“Beyond the obvious attraction of great weather and beautiful beaches, there are two factors that make Florida real estate an especially good value for Canadians,” says Jack Ablin, BMO’s chief investment officer. “The first is that … the median priced home in Florida is nearly half than that in Canada. At the same time, the Canadian dollar is trading nearly 10 percent above ‘fair’ value versus the U.S. dollar, arming Snowbird shoppers with extra buying power.”

Report findings

• There is growing demand for Florida real estate from foreign buyers, most notably Canadians, who have helped support property prices.

• Canada is Florida’s No. 1 source of foreign tourists and the state’s No. 1 foreign buyer of real estate. In 2010, Canadians accounted for 36 percent of all real estate purchases by foreigners.

• More than 500,000 Canadians currently own property in Florida.

• A BMO report from 2012 found 16 percent of Canadians would consider buying a home south of the border.

• Of those considering property in the U.S. in 2012, 56 percent would do so to gain a vacation or secondary property; 44 percent cited affordability as a motivation; 29% viewed a U.S. home purchase as a long-term investment.

Where in Florida are Canadians buying?

The report outlines the key geographies in Florida where Canadians currently own real estate, based on a study by the National Association of Realtors®. They include:

• Sarasota-Bradenton-Venice (17 percent)
• Orlando-Kissimmee (13 percent)
• Miami-Ft. Lauderdale-Palm Beach (13 percent)
• Cape Coral-Ft. Myers (9 percent)
• Tampa-St. Petersburg (9 percent)
• Naples-Marco Island (9 percent)
• Other areas (30 percent)

“Each month brings more positive signs for the state’s housing market,” says 2013 Florida Realtors President Dean Asher. “For example, February is the 14th month in a row that statewide median sales prices for both single-family homes and for townhouse-condo units increased year-over-year, according to [...]]]> Florida’s housing market reported more closed sales, rising median prices, increased pending sales, more new listings and a reduced inventory of homes for sale in February, according to the latest housing data released by Florida Realtors®.

“Each month brings more positive signs for the state’s housing market,” says 2013 Florida Realtors President Dean Asher. “For example, February is the 14th month in a row that statewide median sales prices for both single-family homes and for townhouse-condo units increased year-over-year, according to Florida Realtors’ data.

“Properties are selling more quickly statewide, especially at certain price points – the median days a home is on the market dropped about 15 percent for single-family homes and 10 percent for townhouse-condo units in February. Plus, sellers are receiving more than 92 percent of their original listing price in both the single-family home and townhouse-condo markets.”

Statewide closed sales of existing single-family homes totaled 15,666 in February, up 10.3 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

Meanwhile, pending sales – contracts that are signed but not yet completed or closed – for existing single-family homes last month rose 26.7 percent over the previous February. The statewide median sales price for single-family existing homes last month was $150,000, up 12.8 percent from the previous year.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in January 2013 was $174,100, up 12.6 percent from the previous year. In California, the statewide median sales price for single-family existing homes in January was $337,040; in Massachusetts, it was $282,500; in Maryland, it was $223,469; and in New York, it was $220,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 8,028 units sold statewide last month, up 7 percent compared to February 2012. Meanwhile, pending sales for townhouse-condos in February increased 14.3 percent compared to the year-ago figure. The statewide median for townhouse-condo properties was $115,000, up 21.1 percent over the previous year. NAR reported that the national median existing condo price in January 2013 was $169,600.

The inventory for single-family homes stood at a 5.5-months’ supply in February; inventory for townhouse-condos was at a 6.1-months’ supply, according to Florida Realtors.

“Several things are particularly striking about the February data,” said Florida Realtors Chief Economist Dr. John Tuccillo. “First, we note the continuing growth of cash sales, which are now half of existing single-family closed sales statewide and more than three-quarters of townhouse-condo closed sales. Second, we’re seeing more new listings and that trend is turning positive. This is the first sign that low inventories are convincing sellers to come to the market.

“Third, and related to the last point, the lowest price tiers (for home listings) are just about wiped out and are moving in a direction counter to the state trend,” Tuccillo noted. “The biggest movements in listings as well as the other metrics are in the $300,000-$500,000 price tier.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.53 percent in February 2013, down from the 3.89 percent average during the same month a year earlier.

The overall pace of homes started rose 7 percent from February to March to a seasonally adjusted annual rate of 1.04 million, the Commerce Department said Tuesday.

Apartment construction, which tends to fluctuate sharply from month to month, led the surge: It jumped nearly 31 percent to an annual [...]]]> U.S. homebuilders broke the 1 million mark in March for the first time since June 2008. The gain signals continued strength for the housing recovery at the start of the spring buying season.

The overall pace of homes started rose 7 percent from February to March to a seasonally adjusted annual rate of 1.04 million, the Commerce Department said Tuesday.

Apartment construction, which tends to fluctuate sharply from month to month, led the surge: It jumped nearly 31 percent to an annual rate of 417,000, the fastest pace since January 2006.

By contrast, single-family home building, which makes up nearly two-thirds of the market, fell 4.8 percent to an annual rate of 619,000. That was down from February’s pace of 650,000, the fastest since May 2008. The government said February’s pace was a sharp 5.2 percent higher than it had previously estimated.

Applications for building permits, a gauge of future construction, declined 3.9 percent to an annual rate of 902,000. It was down from February’s rate of 939,000, which was also nearly a five-year high.

Paul Ashworth, chief U.S. economist at Capital Economics, called the data “obviously good news.” But he noted that the surge was due to a jump in volatile apartment construction and said the pace of building could drop in April.

Steady job growth, near record-low mortgage rates and rising home values have encouraged more people to buy. In response to higher demand and a low supply of available homes for sale, builders have stepped up construction.

March’s pace of homes started was nearly 46 percent higher than in the same month in 2012.

Housing construction fell 5.8 percent in the Northeast but gained in the rest of the country, led by a 10.9 percent rise in the South. It rose 9.6 percent in the Midwest and 2.7 percent in the West.

The National Association of Home Builders/Wells Fargo April survey released Monday showed that builders are concerned that limited land and rising costs for building materials and labor could slow sales in the short term. That led to a third straight monthly drop in confidence.

Still, the builders’ outlook for sales over the next six months climbed to the highest level in more than six years, suggesting that the obstacles could be temporary.

And construction firms have stepped up hiring in recent months. They added 18,000 jobs in March and 169,000 since September, according to the Labor Department.

Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to statistics from the homebuilders.

Ocala was the top-ranked of the Florida metropolitan areas, ranking fourth nationally with a median sales price of $75,357 for a three-bedroom home and an average monthly rent of $1,070 on the same-size house, according to the report by real estate research firm RealtyTrac Inc.

The California-based company predicted cash flow by factoring capitalization rates, rental rates and home prices. [...]]]> Seven of Florida’s foreclosure-filled housing markets are among the nation’s Top 20 metro areas for single-family rental investments, according to a report.

Ocala was the top-ranked of the Florida metropolitan areas, ranking fourth nationally with a median sales price of $75,357 for a three-bedroom home and an average monthly rent of $1,070 on the same-size house, according to the report by real estate research firm RealtyTrac Inc.

The California-based company predicted cash flow by factoring capitalization rates, rental rates and home prices. Occupancy rates were not factored into the ranking.

The four-county Orlando metro area ranked 13th for best returns, with a median sales price of $108,000 on a three-bedroom home and an average rent of $1,316 on the same-size house.

“Buying single-family homes as rentals that actually generate good monthly cash flow has become more difficult over the past year as institutional investors crowded into the market, snapping up tens of thousands of properties in 2012 alone,” said Daren Blomquist, vice president of RealtyTrac. “But there are still opportunities for the more conservative, individual investor to buy rental homes that generate a healthy return on investment – it often just takes persistence and a willingness to pass on bad deals.”

Other Florida metro areas on the Top 20 list were: Brevard County, Jacksonville, Volusia County, Tampa-St. Petersburg, and Lakeland.

The Central Florida Veterans Memorial Park Foundation Inc. is building the memorial to honor more than 1,100 fallen veterans from Brevard, Lake, Orange, Osceola, Seminole and Volusia counties.

The foundation received cash and in-kind contributions worth $1.6 million from Orlando businesses.

“It is most gratifying to see businesses step forward, without asking for anything in return, to help honor those who made [...]]]> April 19 marks the groundbreaking for the $4.3 million Central Florida Veterans Memorial Park adjacent to the Orlando VA Medical Center.

The Central Florida Veterans Memorial Park Foundation Inc. is building the memorial to honor more than 1,100 fallen veterans from Brevard, Lake, Orange, Osceola, Seminole and Volusia counties.

The foundation received cash and in-kind contributions worth $1.6 million from Orlando businesses.

“It is most gratifying to see businesses step forward, without asking for anything in return, to help honor those who made the ultimate sacrifice for us to enjoy the freedoms we have today,” Jerry E. Pierce, chairman of Restaurant Equipment World who is also chairman of the foundation, said in a prepared statement.

Founded in 2003, the foundation received land worth $500,000 from the Lake Nona Land Co. LLC. The foundation also received a $250,000 cash donation from Massey Services Inc. Many firms working on the project — including RLF Architects, Engineers & Interior Design, Allan & Conrad Structural Engineers, Boyd Civil Engineering Inc., Don W. McIntosh Associates Inc., MAI Landscape Architects, Universal Engineering Inc. and Wharton-Smith Inc. — donated their services.

The park is expected to be completed in six months.

The groundbreaking at the Orlando VA Medical Center at Lake Nona begins with a reception at 9:30 a.m., and the ceremony is scheduled for 10:30 a.m.

Orlando City Council on April 8 approved Lake Nona Land Co. LLC’s master plan for a corporate campus, which includes 570,000 square feet of general office space in three buildings, a 150-room hotel, and two 10,000-square-foot restaurants, along with 2,830 parking spaces in two parking structures and surface parking lots.

The project would be built on 17 acres north of Lake Nona Boulevard, east of [...]]]> Lake Nona’s commercial center near Medical City is getting closer to putting some shovels in the dirt.

Orlando City Council on April 8 approved Lake Nona Land Co. LLC’s master plan for a corporate campus, which includes 570,000 square feet of general office space in three buildings, a 150-room hotel, and two 10,000-square-foot restaurants, along with 2,830 parking spaces in two parking structures and surface parking lots.

The project would be built on 17 acres north of Lake Nona Boulevard, east of Medical City Drive and south of State Road 417.

The project is a big part of the more than $500 million worth of commercial projects planned for the 7,000-acre community in southeast Orlando this year and next year.