“High expectations are the key to everything.” Sam Walton
My expectations about the Northeast Florida housing market remain high after reviewing the Northeast Florida Association of Realtors Market Stats for May.
The biggest news for May is pending sales of 2,114. The last time we had over 2,000 contracts written in a month was in early 2006. Pending sales are up 36% over last May and 19% year to date through May compared to the previous year. The price range with the largest increase in pending sales is the $1 Million and up properties with a 39% increase.
The closings have not caught up with the surge in pending sales for the last 3 months. I believe this is due to the time it takes to get a transaction closed and the increase in the number of contracts that do not close at all. There were 1,503 closings in May which is 4% more than May 2011. Traditional closings are up 25% and lender-mediated closings are down 19%. Only 37.8% of the closings in May were distressed properties which is down substantially from the 60% we saw at the beginning of 2011.
The median sales price is $133,900 in May which is up 3% over May 2011. The year to date median price is up 2%. May’s median price is down slightly from April but it bounces up and down every month.
The average sales price for May is $183,316 which is up 7% over last May and up 5% year to date. The average price is also up over April. The four zip codes where Davidson Realty does most of our business all showed an increase in average sales price and number of transactions of single family homes in May. Our primary areas are 32092-World Golf Village, 32095-Palencia, 32259-Julington Creek and 32082-Ponte Vedra.
The percent of original list price received is up to 91% in May which is a 3% increase over last May and 3% increase year to date. The price range from $500,000 to $1 Million showed the largest gain in percent of original list price received at 88% with a 5% increase.
The inventory of homes for sale is down to 9,498 available properties in active status at the end of May. This is 30% below May 2011. The true available properties are much less than this because short sales stay in active contingent status until the lender approves the short sale. So there are many properties under contract counted in the active status.
There is 6.2 months supply of inventory available in May which is 39% below last May. Five to six months supply is considered a balanced market.
The positive trends continue with pending sales increasing, inventory decreasing and prices stabilizing and showing signs of improvement. Baseball season is in full swing with the All Star Game just around the corner. Jim celebrates 4 years with his new liver this weekend. Life is good!
Please let me know if I can assist you with any of your real estate needs. I am always happy to answer any questions you may have about any real estate issue.