The traditional sales increase we hoped for during the 2007 “summer peak buying season” has not happened. Sales (unadjusted) for the month were 1,431 homes sold, down 49.6% compared to last year’s 2,841 sales in June of 2006 according to the latest Market Pulse Report. This report includes homes sold in Orange and Seminole Counties and covers June 2006 to June 2007 real estate activity. The report covers listings, sales, days on market & important statistics regarding real estate transactions in Orange and Seminole Counties comparing and showing trends for the past thirteen months. Here's a link to this month's report: www.orlrealtor.com/Pages/marketpulse/Market_Pulse_July_9.pdf You may also view this monthly information anytime at www.MartysBlog.com.
The active listing numbers (homes for sale) increased to 25,923 homes for sale in the two county area. This is another new record high inventory level in Central Florida real estate, and a record which has been broken monthly for six consecutive months. While homes for sale increased, homes sold during the month declined. The number of Realtors in our Association is higher than one year ago (12,545 members in 2007 compared to 11,951 in June, 2006) and also increased for the month. There are about 11,440 homes sold in 2007 year to date. When divided between 12,000+ agents that’s an average of less than one home sold in six months per agent!
The number of homes on the market increased by 40.6%, 25,923 in June, 2007 compared to 18,437 in June, 2006. With the exception of condos and areas where there is new construction and investors still trying to sell, the price drops have been significant but not devastating in most areas. The Absorption Rate (the number of homes for sale 25,923 divided by the monthly closed sales 1,431), which is a key indicator of overall market health, shows there is currently more than a 18 month (a year and a half) supply of homes on the market! This is the highest number I’ve ever experienced. It doesn’t seem likely to slip much further but one concern is that “New Contracts” (a predictor of closed sales for the next month or two) slipped to the lowest number in the thirteen month period.
We are starting to see increased buyer activity in the lower price ranges and are getting a few more showings than in the past several months, but showings are still precious few. The price reductions seem to be steeper and more widespread and the number of vacant homes seems to have increased. Buyers are entering the market to buy at the lower prices, but it’s the lowest priced homes or the nicest homes in the neighborhood at near the lowest prices that are selling.
Optimistically, I think we are going to see the market bottom out during the last half of 2007. As we enter 2008 the numbers will look much better because we’ll be comparing against the 2007 sales and inventory figures. On behalf of the entire Marty Hunt Team, we look forward to assisting you with any real estate needs throughout the Central Florida area. Feel free to contact me directly at (407) 869-7779 or (888) 412-8681 with any real estate questions you may have. Enjoy the summer!
Marty Hunt, ABR, CRS, GRI, e-PRO
Realty Executives Orlando
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