Home sales down 15.6% in June

Sales of existing homes in Lake, Orange, Osceola and Seminole counties are down 15.6 percent when compared to June of last year, and year-to-date sales are down by 1.8 percent from 2005, according to the Orlando Regional Realtor Association.

June sales of existing homes in the Orlando area fell by 14 percent when compared to June 2005.

Despite the decline, the area's sales-to-date remain 1.57 percent ahead of the 2005 year-to-date tally and are on track for a possible record year, the association says.

A total of 2,680 existing homes changed hands through members of the Orlando Regional Realtor Association in June, for a midyear total of 14,924. In June 2005, 14,694 homes had been sold.

Contributing to the slowing pace of sales, says ORRA President Beverly Pindling, is the marked increase in inventory of available homes.

"Last year, the market was so tight that buyers were forced to make immediate decisions and negotiations rarely factored into lightning-fast transactions," Pindling says. "Right now, buyers are able to take their time viewing different homes and even engage in the negotiation process."

June saw the smallest rise in inventory from the previous month since February. June's inventory was up by only 258 listings from May, whereas from April to May inventory jumped by 2,143 homes.

The average mortgage interest rate in June rose to 6.45 percent over last month's 6.39 percent. The rate is expected to reach 7 percent by year end.

The median price of Orlando-area homes -- $249,000 -- is currently 3.97 percent above the median price in June of 2005, which was $239,500. However, June's median price actually dropped by 1.6 percent when compared with May, another reflection of a stabilizing market that is permitting price negotiations between buyers and sellers, Pindling says.

A breakdown of existing homes shows that of the 2,680 sales during June, 2,010 were single-family homes; 459 were condos; and 211 were town homes, villas or duplexes.

Last June, 2,436 sales were single-family homes; 483 were condos; and 200 were town homes, villas or duplexes.

Most existing homes fell within the $200,000-$249,999 range, while most condos fell within the $140,000-$179,999 range.

When compared to June of 2005, each of the four counties saw a decrease in sales last month: Lake County by 26.1 percent; Orange County by 14.8 percent; Osceola by 17.5 percent; and Seminole by 7 percent.