Housing Market John E. Lazenby, ABR, AHWD, CIPS, GKC Colony Realty - PowerPoint PPT Presentation

The Orlando Housing Market John E. Lazenby, ABR, AHWD, CIPS, GKC Colony Realty Group, Inc. 2016 ORRA President

Orlando Annual Home Sales Annual home sales have more than doubled since the low of 2008 Annual Home Sales 35,151 28,765 30,712 30,369 28,701 27,791 23,921 16,744 14,880 2007 2008 2009 2010 2011 2012 2013 2014 2015

Orlando Median Price October’s median price has increased by 95 percent since October 2010 October Median Price $235,000 $205,000 $175,650 $160,000 $179,900 $112,500 $154,000 $130,000 $122,500 $105,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Orlando Home Sales by Price Range 36 percent of homes sold in October were priced $100,000 to $199,999 October Home Sales by Price Range 969 793 306 314 141 40 36 38 12 13 2

Orlando Inventory October inventory decreased 62 percent since October 2007 October Home Inventory 26,330 24,657 15,441 12,507 11,411 15,743 10,025 9,470 9,973 8,094 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Orlando Months of Inventory 5- 7 months of inventory is generally considered a “balanced market” October Months of Inventory 24.16 20.08 7.91 6.79 4.33 3.97 3.76 3.97 4.64 3.13 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Orlando Average Days on Market Homes are going under contract in approximately 2 months October Days on Market 111 110 92 91 71 106 72 61 79 64 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Orlando Pending Home Sales October’s pending home sales have decreased almost 49 percent since October 2012 October Pending Home Sales 9,252 9,050 8,937 8,817 7,099 6,384 5,281 4,719 3,316 1,923 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Average Interest Rate Interest rates have returned to levels seen in 2012 and remain low October Average Interest Rate 6.30% 6.21% 5.02% 4.21% 4.28% 3.86% 4.28% 4.05% 3.57% 3.49% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Orlando Home Sales by Type Normal sales made up 88 percent of all home sales in October 2016 Normal Sales: 88.10% October 2015: 76.61% Short Sales: 2.82% October 2015: 3.86% Foreclosures: 9.08% October 2015: 19.53%

Orlando Median Price by Sales Type Sales of all types have seen mixed median price changes October Median Price by Sales Type $212,000 $195,750 $145,450 $150,000 $124,360 $125,000 2015 2016 Foreclosure Short Sale Normal

YTD County Snapshot: Orange Sales in 2016 (YTD) Total Units Sold 17,733 Total Sales Volume $4,550,069,763 Average Sales Price $256,588 Average Cost Per Square Foot $132.37 All zip code reports available at www.orlandorealtors.org.

YTD County Snapshot: Seminole Sales in 2016 (YTD) Total Units Sold 7,191 Total Sales Volume $1,606,595,367 Average Sales Price $223,418 Average Cost Per Square Foot $114.02 All zip code reports available at www.orlandorealtors.org.

YTD County Snapshot: Osceola Sales in 2016 (YTD) Total Units Sold 5,658 Total Sales Volume $1,128,635,860 Average Sales Price $199,476 Average Cost Per Square Foot $106.72 All zip code reports available at www.orlandorealtors.org.

YTD County Snapshot: Lake Sales in 2016 (YTD) Total Units Sold 5,719 Total Sales Volume $1,109,462,478 Average Sales Price $193,996 Average Cost Per Square Foot $102.66 All zip code reports available at www.orlandorealtors.org.

Issues Affecting the Real Estate Market Tough credit standards  Mortgage rates are low, but down payment requirements required and the credit worthiness of the borrower can make it difficult to secure a loan.  Great rates are only available to those with a good credit and a substantial down payment. A real crunch may come if rates rise and credit standards also remain high.

Issues Affecting the Real Estate Market Competition from all cash buyers  YTD - 31.02% of sales have been all cash.  Often fueled by international investors and retirees flooded with cash after selling their homes elsewhere.  First-time homebuyers often get squeezed out to the market.

Issues Affecting the Real Estate Market Low inventory of homes in lower price range available  Active listings under $200,000 in October 2015: 4,407 Active listings under $200,000 in October 2016: 2,973  According to MetroStudy, new home starts in the $250K to $299K price range numbered 2,968 in 1Q16, up 37.6% from 2,157 in 1Q15, while starts in the $150K to $199K and below $150K price ranges continued to decline to 713 and 25, respectively.

Issues Affecting the Real Estate Market Millennials make up 32 percent of homebuyers nationally  Nearly two-thirds are saving cash in order to buy their first home.  What’s holding back some Millennials from buying?  Outstanding student loan debt  Higher unemployment rates  Challenging mortgage loan underwriting guidelines

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