May 2020

April ‘arithmetic’ From The Resort Area…

The Covid-19 pandemic has been a significant contributory factor in the overall increase of Resort area inventory during April as the total number of homes listed for sale climbed 27.7% year on year from 1,263 homes in April 2019 to 1,614 last month whilst also rising 11% from the March 2020 total of 1,463.  Overall sales during the last 2 weeks of April slowed considerably with the number of closed sales of 341 down 33.3% from last months 361 closings and also 27.2% down on the April 2019 closed total of 331.  Homes that did sell took on average 3 days less than they did a year ago at 97 days whilst closings achieved 97.2% of the listed price compared to a 97.3% level one year ago.  The markets median price of $238,438 was up 8.6% from a year ago when this figure stood at $217,936 with prices also up 0.2% from last months $237,496.  Homes withdrawn from the market during April having failed to find a buyer totaled 144 whilst the main key indicator for forward closings of pending sales stood at 386 homes which was down 22.7% from the 499 pipeline total last month and 41.3% lower than the April 2019 pending total of 657.  The overall April inventory was higher when considered against monthly pace of sales recording a 6.7 month supply of available homes on the market which compared to a 3.8 month level one year ago and the 4 month supply level recorded in March 2020.

Orlando…

Orlandos March housing market saw home sales increase by just under 2% compared to March 2019, while the median price was up 8% with overall inventory experiencing a year on year decline of 10%, according to the Orlando Regional REALTOR® Association.  The overall median price of Orlando homes (all types combined) that sold during March was $253,500, which was 7.9% higher than the March 2019 median price of $235,000 and 1.4% above the February 2020 median price of $250,000. The median price of a single family home that changed hands during the month increased 5.9% from a year ago to $270,000 whilst the median price of condos increased 14.5% to $146,000 and townhomes/villas/duplexes was up 5% to $220,000.  Orlando Realtors participated in 3,204 sales of all home types during March, which was 2% up on the 3,142 sales in March 2019 and 27.1% more than the 2,521 sales of February 2020.  Sales of single family homes totaled 2,544 which was 3.3% higher than in March 2019, while condo sales of 352 were down 11.3% year on year. Sales of distressed homes (foreclosures and short sales) totaled 80 which was 27.3% less than the 110 distressed sales of March 2019 with distressed sales comprising 2.5% of all Orlando area transactions last month. Homes that closed during the month took an average 54 days to move from listing to pending and an average of 37 days between pending and closing, for an average total of 91 days from listing to closing, down from 94 days in February. Pending sales were down 14.9% compared to March of last year and down 14.7% on the previous month. The overall inventory of homes available for purchase stood at 7,341 which represented a decrease of 9.6% compared to March 2019, and a 7.6% increase compared to last month. By home style there were 14.2% fewer single family homes listed and 1.3% fewer condos, year on year. Current inventory combined with the existing pace of sales created a 2.3 month supply of homes in Orlando during March compared to the 2.6 month supply in March last year and a 2.7 month supply last month.

Florida…

The Florida housing market reported more closed sales and higher median prices year on year, but pending sales, new listings and pending inventory showed lower levels compared to March 2019, according to the latest housing data released by Florida Realtors®. Sales of single family homes statewide totaled 26,611 last month, 6.4% higher than March 2019 with the impact of the coronavirus pandemic on Florida and across the U.S. starting to intensify from mid March. As a result, new listings and new pending sales trended downward. In March, new listings of single family homes were down 3.6% compared to a year ago, while new listings for condo and townhouse properties were down 10.4%.   Statewide median sales prices in March for both single family homes and condo and townhouse properties was up year on year for the 99th consecutive month. The statewide median sales price for an existing single family home was $275,000, an increase of 7.4% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price of condos and townhome units was $210,000, up 10.8% year on year. The condo and townhouse market, statewide saw closed sales of 10,823, up 4.7% from the level of a year ago. New pending sales, which is the count of how many home sales went under contract during the month, illustrated how the landscape of Florida’s residential real estate market was changing during March as on the single family home side, the market had a year on year drop in new pending sales of 22.6%, while the condo and townhome market saw a decline of 35% compared to last year. New pending sales were really the first metric to turn in a downward direction after the stock market falls of late February, as buyers increasingly became wary of making a commitment as large as a home purchase in the face of such sudden economic uncertainty. This trend has only accelerated through the end of the month as the local closures and stay at home orders started to come into force across the state.

U.S…

Month on month existing home sales fell in March across the nation following a February that saw significant nationwide gains, according to the National Association of Realtors® (NAR). Each of the four major regions reported a dip in sales, with the West suffering the largest decrease. Total existing home sales  for all home styles dropped 8.5% from February to a seasonally adjusted annual rate of 5.27 million in March. Despite the decline, however, overall sales increased year on year for the ninth straight month, up 0.8% from a year ago (5.23 million in March 2019).  The median existing home price for all housing types during March was $280,600, up 8% from March 2019 ($259,700), as prices increased in every region.  Single family home sales sat at a seasonally adjusted annual rate of 4.74 million, down from 5.16 million in February, and up 1.3% from a year ago. The median existing single family home price was $282,500 in March, up 8% from March 2019. Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 530,000 units, down 11.7% from February and down 3.6% from a year ago. The median existing condo price was $263,400 which represents an increase of 7.9% from one year ago.  Properties typically remained on the market for 29 days, seasonally down from 36 days in February, and down from 36 days in March 2019.  Individual investors or second home buyers, which account for many cash sales, purchased 13% of all homes during March, down from 17% last month and 18% a year ago.  Cash buyers  accounted for 19% of all transactions down from 20% in February and 21% in March 2019.  Distressed sales of foreclosures and short sales represented 3% of all sales, up from 2% in February but unchanged from the 3% level in March 2019.  Total housing inventory at the end of March stood at 1.5 million units, up 2.7% from February but down 10.2% from the one year ago level of 1.67 million. Unsold inventory sits at a 3.4 month supply at the current sales pace, up from three months in February and down from the 3.8 months recorded in March 2019.

April 30th 2020

1 G.B.P…Buys 1.251 U.S.D – 1 U.S.D…Buys 0.799 G.B.P

1 EURO…Buys 1.087 U.S.D – 1 U.S.D…Buys 0.919 EURO

1 CAN $…Buys 0.720 U.S.D – 1 U.S.D…Buys 1.388 CAN $

1 BRL $…Buys 0.184 U.S.D – 1 U.S.D…Buys 5.416 BRL $

U.S Prime Interest Rate = 4.25%

Team Donovan publish a monthly report on the 1st of each month for the benefit of Worldwide Florida absentee owners. If you are considering selling your own property now or in the future please do feel free to contact us, as we would be delighted to discuss the marketing of your home in more detail.