Lately in the Davidson Realty weekly sales meetings our Jacksonville Realtors have been sharing the kinds of stories we’ve haven’t heard in quite awhile. That is the “Tale of the Home that Got Away”. The market is heating up and buyers are actually missing out on the homes they want because they are not moving quickly enough or underbidding. It seems that the tide is shifting away from the Buyer’s Market. The primary reasons for that are reduced inventory and pent up demand. People are finally buying homes again and there are fewer to choose from.
Recent statistics from the Northeast Florida Association of Realtors (NEFAR) shows:
• Pending sales for May 2012 were up 36% over last May. The price range with the largest increase in pending sales is the $1 Million+ category with a 39% increase.
• Inventory continues to decline. There were 9,498 homes for sale in May 2012, a 30% drop from May 2011. In May there was 6.2 months supply of inventory – a five to six month inventory represents a balanced market.
Although closings have still not caught up with the surge in pending sales that has occurred over the last three months, transactions are simply taking longer to close. The takeaway for homebuyers is to be prepared to act quickly when they find the right home. We’re recommending buyers get pre-approved not just pre-qualified before starting their home search. Also, if it’s truly your dream home, make a strong opening offer. The biggest mistake is that buyers are still in the mindset that it’s a distressed housing market and they are in the driver’s seat. The truth is, great homes at fair prices are being snapped up quickly. The market is more balanced and home buyers need to come prepared.