September 30, 2009
Orlando still has the lowest-priced condos of any metro area in the state, and the area experienced a bigger drop in home prices last month than most other Florida cities, according to a report released Thursday by the Florida Association of Realtors. Single-family home sales in the four-county metro area were up 48 percent last month from August 2008, compared with a statewide average rise of 28 percent.
Driving that flurry of activity may have been the year-over-year price decline of 29 percent for Orlando, compared with 22 percent for the state as a whole.
Orlando's median price for single-family homes is now so low —$144,200 — that it has dropped below the $147,400 median for all of the state's metro areas. Rarely in the past four years have Orlando prices compared less favorably with other Florida markets.
"The short sales are just pushing everything down, and the short sales are just the majority of the market right now, even in the luxuxry Windermere communities," said Mark Dean, a broker with Maingate Real Estate of Windermere. Orlando continues to rank high on national rankings for foreclosures and other distress sales.
Meanwhile, the median price for Orlando condominiums in August was the lowest in the state: $49,900. The statewide average was $107,500. While condo prices in Orlando — which is still awash in apartment conversions from the boom years — have fallen more than 50 percent in the past year, statewide they fell only 32 percent.
Dean noted that the Orlando area had always been insulated from and fared better than the nation as a whole, but the high percentage of distressed properties in the region has a toll.
High-end customers are seeing their net worths hurt if they had a lot of money tied up in real estate. Some clients who sold in recent years, he added, are now more interested in renting than buying because of the uncertain market.
For the state overall, the Realtors group said the continuing increases in sales are encouraging.
"While it shows the beginnings of recovery, the housing market still needs time to continue its gradual absorption of housing inventory that will help stabilize home prices," said Cynthia Shelton, president of the statewide association.
She said it is "critical" that Congress extend the first-time homebuyer tax credit into 2010. Right now, it's schedule to expire at the end of November.
"Because it's now taking longer to finalize a home sale, first-time buyers who want to take advantage of the $8,000 federal tax credit need to act quickly, or they may miss the closing deadline of Nov. 30, 2009," Shelton said.
Sixteen of Florida's metropolitan areas reported an increase in August single-family resales, and 18 showed gains in condo sales. A majority of the state's metro areas have now reported increased sales for 14 consecutive months.
In Florida's year-to-year comparison for condos, 4,674 units sold statewide compared with 3,222 in August 2008 — a 45 percent increase.
Among the state's larger markets, Volusia County reported a total of 686 single-family homes sold in August compared with 573 a year earlier. The median price paid for those homes last month was $132,700 vs. $164,200 a year ago.
Driving that flurry of activity may have been the year-over-year price decline of 29 percent for Orlando, compared with 22 percent for the state as a whole.
Orlando's median price for single-family homes is now so low —$144,200 — that it has dropped below the $147,400 median for all of the state's metro areas. Rarely in the past four years have Orlando prices compared less favorably with other Florida markets.
"The short sales are just pushing everything down, and the short sales are just the majority of the market right now, even in the luxuxry Windermere communities," said Mark Dean, a broker with Maingate Real Estate of Windermere. Orlando continues to rank high on national rankings for foreclosures and other distress sales.
Meanwhile, the median price for Orlando condominiums in August was the lowest in the state: $49,900. The statewide average was $107,500. While condo prices in Orlando — which is still awash in apartment conversions from the boom years — have fallen more than 50 percent in the past year, statewide they fell only 32 percent.
Dean noted that the Orlando area had always been insulated from and fared better than the nation as a whole, but the high percentage of distressed properties in the region has a toll.
High-end customers are seeing their net worths hurt if they had a lot of money tied up in real estate. Some clients who sold in recent years, he added, are now more interested in renting than buying because of the uncertain market.
For the state overall, the Realtors group said the continuing increases in sales are encouraging.
"While it shows the beginnings of recovery, the housing market still needs time to continue its gradual absorption of housing inventory that will help stabilize home prices," said Cynthia Shelton, president of the statewide association.
She said it is "critical" that Congress extend the first-time homebuyer tax credit into 2010. Right now, it's schedule to expire at the end of November.
"Because it's now taking longer to finalize a home sale, first-time buyers who want to take advantage of the $8,000 federal tax credit need to act quickly, or they may miss the closing deadline of Nov. 30, 2009," Shelton said.
Sixteen of Florida's metropolitan areas reported an increase in August single-family resales, and 18 showed gains in condo sales. A majority of the state's metro areas have now reported increased sales for 14 consecutive months.
In Florida's year-to-year comparison for condos, 4,674 units sold statewide compared with 3,222 in August 2008 — a 45 percent increase.
Among the state's larger markets, Volusia County reported a total of 686 single-family homes sold in August compared with 573 a year earlier. The median price paid for those homes last month was $132,700 vs. $164,200 a year ago.
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