The most glaring statistic from the latest report from the Orlando Regional Realtor Association is the 15% increase in median price when compared to the same time last year and 21% since January 2011.
A closer look reveals the increase in median price is mainly due to the fact that bank owned properties accounted for half of all sales this time last year but now only accounts for only 25% of all the sales. In addition, the price of bank owned properties have increased 17% when compared to the same time last year.
The median price of a foreclosure property currently stands at $81,750 while the median price of a traditional sale stands at $155,000. Thus, a clear explanation of the increase in median price emerges.
At the same time, inventory of homes for sale has dropped 30% since January 2011. We haven’t seen these levels since 2005.
Now that we know the reasons for prices increasing, let’s just hope this trend becomes permanent rather than a temporary phenomenon.