Orlando Home Sales Drop; Record Year for Florida Home Loans Still on the Horizon

What kind of shape is the Orlando housing market in? Consider these impressive figures:

Despite the drop in sales of existing homes this month in Lake, Orange, Osceola and Seminole counties - by the significant amount of 15.6 percent when compared to June of last year - the region is STILL on track for a record year. The Orlando Regional Realtor Association predicts a 1.57 percent increase in Florida home loan sales in the city.

A total of 2,680 existing homes changed hands through members of the Association in June, for a midyear total of 14,924. In June 2005, 14,694 homes had been sold. Contributing to the slowing pace of sales, said ORRA President Beverly Pindling, is the marked increase in inventory of available homes.

“Last year, the market was so tight that buyers were forced to make immediate decisions and negotiations rarely factored into lightning-fast transactions,” Pindling says. “Right now, buyers are able to take their time viewing different homes and even engage in the negotiation process.”

Also, the average Florida home loan rate in June rose to 6.45 percent, over last month’s 6.39 percent. By the end of the year, 7 percent is not out of the question.

The median price of Orlando-area homes - $249,000 - is currently 3.97 percent above the median price in June of 2005. However, June’s median price actually dropped by 1.6 percent when compared with May, another reflection of a stabilizing market that is permitting price negotiations between buyers and sellers, Pindling says.

Here’s a breakdown of the existing homes sold in the area in June:

• 2,010 were single-family homes
• 459 were condos
• 211 were town homes, villas or duplexes

As the year goes on, more and more Florida home loans are expected to be applied for. Orlando has always been an appealing place to reside from those within the state and around the nation.