September Home Sales Plummet in Orlando

Thud!

That loud sound you just heard? It was probably September home sales in the Orlando housing market crashing down to earth. The area took a major hit last month, as figures came in 35 percent below the number of homes sold in the same period a year earlier.

The Florida Association of Realtors reports that 2,015 single-family existing homes changed hands in September, down from 3,105 in September 2005.

The median price of single-family homes, however, was up 6 percent at $265,000 (compared with $250,100 a year ago). Such an increase might explain why borrowers refrained from applying for any mortgages in the city; they’re waiting for prices to drop.

Meanwhile, sales of existing condominium sales in metro Orlando also took a big hit, down 38 percent from September 2005. The median sales price of condos also was down 17 percent, from $197,200 in September 2005 to $163,400 this year.

Statewide, FAR says Florida’s housing sector continued to adjust to a more sustainable pace of sales in September, with many markets reporting higher inventory levels of unsold properties. However, FAR notes, relatively low mortgage rates were expected to spark buyer interest.

A total of 13,485 existing single-family homes sold statewide last month, a decrease of 34 percent from the 20,451 homes sold during the previous September. Statewide, the existing-home median price slipped 1 percent to $243,900 last month; a year ago, it was $246,100, according to FAR.

If that trend continues, the Florida housing market should rebound. Sellers may not get their ideal asking proces, but inventories will at least decrease as times goes on.