September 2011

August Arithmatic From The Four Corners…

Inventory levels remained stable last month with a total 1134 homes listed for sale across the communities tracked by Team Donovan. August total closings were down 12% from last month with 219 homes changing hands. Homes that sold recorded an average 157 days on the market which was an increase of 1 day from last month’s figure, and secured on average 96.25% of the asking price at the closing. The total number of homes awaiting closure currently recorded under offer/contract stands at 964 which was little change on last months pending figure of 983 homes. During August 106 homes withdrew from the market having been unable to secure a sale. The August sales total when divided by overall inventory amount would indicate a 5.17 month supply of available homes at the current sales pace which is up from the 4.3 month supply recorded last month and 3.7 month supply total of June this year.

Orlando…

Both sales and listings are down from a year ago the monthly Orlando Realtor report indicated.  July recorded 2,147 total sales which was down 15% from a year earlier. Bank owned sales fell 49% from this time last year while short sales increased 17%. At the current sales pace the Orlando area has a 4.8 month supply of inventory. The total number of homes available for purchase declined in July by 210 homes to stand at 10,349. The area currently has 9,869 homes pending closure which is under half the pending contracts total recorded one year ago. Homes that are selling are taking longer to close than one year ago, with an average 101 days on the market in July, up from 84 days this time last year. The Orlando median price for an existing single family home in July stood at $117,000 which was up from $110,000 the previous month. The increase in prices this month is at odds with some National forecasts which have predicted declining Orlando home prices through to early 2013, based on a range of factors such as predicted area employment levels and foreclosure related sales. The Orlando areas current slight upward price swing appears to be at least in part driven by an increase in the percentage of normal non distressed transactions changing hands. While those sales are still in the minority their numbers have increased for six straight months with 42% of local Realtor sales falling into this category in July.  The midpoint price for Orlando bank owned sales in July stood as  $80,000 with the median price for Orlando short sales $98,000.

Florida…

Across Florida existing home and condo sales rose in July, according to the monthly Florida Realtors® report. Existing home sales increased 12% last month with a total of 15,517 homes selling statewide compared to  13,874 sales in July 2010. Statewide the sale of existing condos rose 12% last month compared to one year ago. Fifteen of Florida’s metropolitan statistical areas (MSAs) reported higher existing home sales in July with thirteen MSAs seeing higher condo resale closings. The statewide median sales price for existing homes last month stood at $136,500 from $137,700 one year ago. Analysts with the National Association of Realtors® (NAR) continue to observe that the sale of foreclosure and other distressed properties continue to downwardly distort the median price as they on average continue to sell at a discount relative to traditional homes. In Floridas year on year condo sales comparison, 6,619 units sold statewide last month compared to 5,904 sales in July 2010 representing a 12% sales increase. The statewide existing condo median sales price last month stood at $90,900 which was up 4% from the July 2010 figure of $87,800.

U.S …

Nationally the number of new homes purchased fell for the fourth straight month in July, putting sales on track to finish this year at the lowest on record going back over half a century. Sales of new homes fell nearly 1% in July to a seasonally adjusted annual rate of 298,000, the Commerce Department reported during the month which is less than half the 700,000 that economists generally say represent a healthy market. Nationally all sale types remain weak as sales of resale homes also fell in July for the third time in four months. Overall sales continue to trail last years 4.91 million total which was the lowest sales level since 1997. Its generally considered that in a stable healthy economy, people buy approximately 6 million U.S existing homes annually. Another report during the month observed that a larger than normal number of previously owned home closings cancelled at the last minute, a possible sign that many buyers remain  somewhat nervous about the current U.S economy. The report noted that at least 16% of all contracts were cancelled before closing last month which was four times the normal cancellation rate.

Closing Numbers…

August 31st 2011

1 G.B.P…Buys  1.629 U.S.D                   –              1 U.S.D…Buys  0.613  G.B.P

1 EURO…Buys  1.440 U.S.D                   –              1 U.S.D…Buys  0.694  EURO

1 CAN $…Buys 1.021 U.S.D                   –               1 U.S.D…Buys  0.979  CAN $

U.S Prime Interest Rate = 0.25%

Team Donovan publish an updated 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 own home in more detail.