Orlando Home Prices Rise, Sales Decrease in January

The residential real estate market last month saw a significant drop in sales, while median prices, Florida mortgage rates and the inventory of homes for sale all went up, the Orlando Regional Realtor Association reported Friday.

In January, 31.5 percent fewer homes sold than in the same month last year. That figure is probably related to this one: the median price rose by 3.6 percent (to $249,700), while interest rates edged up to 5.9 percent.

The supply of Orlando homes, meanwhile, rose by 1,729 homes in January to total 21,266 - a 16.1-month supply. Single-family homes represented the largest portion of homes on the market through the local multiple listing service, with 15,770, a 7.6-percent increase since December.

Next was condominiums, which increased 12.7 percent since December to 3,648. Duplexes, town homes and villas accounted for 1,848 of the inventory, a 12.1-percent jump.

Condo sales dropped 47 percent to 219 in January, and many unsold units in condo conversions are expected to go back on the rental market. About 17.8 percent of condos sold last month ranged $140,000 to $160,000. Sales of duplexes, townhomes and villas, meanwhile, dropped 32 percent last month to 101 and 28.7 percent of those sold ranged in price from $200,000 to $250,000.

In the Orlando metropolitan statistical area, consisting of Lake, Orange, Osceola and Seminole counties, 1,586 homes sold last month, down 34.5 percent when compared with January 2006. Florida mortgage demand was lacking in the face of increased prices.

Although the numbers are down, consumers should look at this as an opportunity to take advantage of a buyer’s market, which historically hasn’t lasted long in the Central Florida housing market, Randy Martin, ORRA president, says in a statement. Economists expect inventory levels to begin receding to normal levels as early as May, Martin says.