Report: Existing home and condominium prices continue to rise

In a stormy and less-than robust economy it’s hard sometimes to find a silver lining, especially in an existing home market that has had more clouds than sunshine the past three or four years. But despite enduring some rough economic weather, skies appear to be clearing, and the forecast looks like there is some good weather ahead.

Winter Park zip code 32789 performed the best with condo sales up 7 percent despite an average price that jumped 46 percent to $239,192 and a median price that spiked 87 percent to $182,450.

Our 2012 Mid-Year Hillman Report showed existing home and condominium prices continued their upward climb in Greater Orlando over the first six months this year, even though overall sales were down slightly from a comparable period in 2011.

When looking at existing housing trends in Orange and Seminole counties, we employed information based on My Florida Regional MLS Database and found prices continued to gain traction in most categories when matched with prices the first six months of 2011. Moreover, there remained a large number of homes under contract, which bodes well for the balance of the year.

The uptick in prices and a still-challenging economy had a collaborative effect on overall sales being off just 6.2 percent from last year at this time. But the good news is average and median prices for homes and condos were up or unchanged in seven of eight price categories that range from less than $200,000 to more than $1 million.

Contrary to what some might believe in a still-struggling economy, the biggest gainers in home sales were in two of the upper price ranges. Sales of homes priced from $750,001 to $1 million were up 30 percent (79 from 61) over last year for the first six months, while homes priced from $500,001 to $750,000 were up 23 percent (771 from 626). Sales of lakefront homes in zip code 32804, which includes College Park and parts of downtown Orlando, were up an astronomical 800 percent (9 from 1) over a comparable period last year, while non-lakefront homes in that same zip code were up 30 percent (153 from 118). From a price standpoint, homes priced under $300,000 showed the most appreciable increases over last year at this time, with average and median prices up five and four percent, respectively.

Although overall condominium sales were off 16.6 percent through June, sales of units priced over $500,000 were up a whopping 133 percent (14 from 6) over a comparable period last year, even though their average price jumped 13 percent to $794,857 and their median price edged up 2 percent to $640,000. Also selling well were condos priced from $201,000 to $500,000, up 31 percent (211 from 161) over how they performed the first six months last year. Winter Park zip code 32789 performed the best with condo sales up 7 percent despite an average price that jumped 46 percent to $239,192 and a median price that spiked 87 percent to $182,450.

One thing to watch closely as we move forward is the number of pending sales that close in the coming months. Given gradually improving market conditions over the first six months this year, I believe the large number of pending sales will decrease significantly by year’s end, which is further cause for optimism.

Scott Hillman is president of Fannie Hillman + Associates, a 31-year-old Winter Park firm that twice a year publishes The Hillman Report, which takes a comprehensive look at existing housing trends in Orange and Seminole counties. For more information, call 407-644-1234, toll free at 800-283-6235, or visit fanniehillman.com where you can find a copy of the report.