Sales of existing home in the Orlando area were up 37% in January compared with the same month last year.  The median price of Orlando area homes sold in January of this year was $148,274, which is a decrease of 33% compared to sales in January 2008.  Currently, the area's average interest rated dropped to its lowest point since May 2005.  This creates a wonderful opportunity for buyers, although uncertainty about the economy is still causing some to hesitate.    The recently passed tax credit available to buyers, as well as better financing options should lead to an increase in sales as well as a decrease in inventory.  The combination will help to stabilize housing prices.   

 

The decrease in the median price drove the area’s affordability index to another record high of 165%. (An affordability index of 99 percent means that buyers earning the state-reported median income are one percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.) Buyers who earn the reported median income of $52,136 can qualify to purchase one of 12,122 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $245,046 or less.  The affordability index for the first-time buyer has increased to 117%.