For the fourth consecutive month, the number of foreclosure sales and short sales were down in the Orlando area in May, according to the Orlando Regional Realtors Association.
Although 62.53 percent of sales completed in May were of distressed properties, the continued rise in traditional sales indicates the market is moving in the right direction.
Given that non-distressed properties sell at higher prices than distressed real estate, the increase in traditional sales has been accompanied by a rise in median home price. The May median price of $110,000 was up from $105,000 in April, and was only 4.35 percent lower than the median price in May 2010.
But while median price remained relatively steady since last year, total sales volume declined 14.95 percent.
Because the spring 2010 housing market benefited from a homebuyer's tax credit, other regions of the country have also noted sharp year-over-year declines in sales volumes. Southern California's sales dropped 17.5 percent, according to a DataQuick report.
Overall, the Orlando area has experienced a decline in sales comparable to Southern California, but certain areas have been affected more than others. Of the four counties considered by ORRA, sales went down the most in populous Orange County (14.99 percent), and the least in Osceola County (4.93 percent).