The inventory of houses listed for sale was the smallest since mid-2005. Based on the current demand from buyers, the market had a 3.72-month supply of houses listed for sale. A six-month inventory is considered a normal balance between buyers and sellers.

“These factors also indicate a shift toward favoring sellers, and the downward slide in inventory means a downward slide in the number of choices available to buyers,” said Stephen Baker, chairman of the board for the association.

Of three categories of sales, only short sales experienced a year-over-year decline in prices. Bank-owned sales prices increased by 5.25 percent, to $84,200 from $80,000; normal sales prices increased by 3.33 percent, to $155,000 from $150,000; and short sale prices decreased by 0.73 percent, from $102,000 to $102,750.

Sales activity was down from year earlier when foreclosures dominated the market and accounted for almost half of all sales. In March, foreclosures accounted for only about a quarter of sales. More than 40 percent were normal and a third were short sales.

Association members closed on 2,327 home sales in March, an increase of 18 percent from a month earlier. That sales pace, however, was an 11-percent decline from a year earlier.

The average interest rate paid by Orlando home buyers in March was 3.99 percent, which was up slightly from 3.92 percent in February. Homes of all types sat an average of 97 days on the market before coming under contract in March and the average home sold for 94.83 percent of its listing price. A year earlier, those numbers were 103 days and 95.35 percent.

Pending sales – those under contract and awaiting closing – were at 9,748. The number of pending sales in March was 2.50 percent higher than it was 12 months earlier and 4.28 percent higher than a month ago. Short sales, which take longer to process, made up more than two thirds of pending sales.

mshanklin@tribune.com or 407-420-5538