Jacksonville Real Estate Trends in May – An increase in new listings which is very good news!

June 26, 2018


The Northeast Florida Association of Realtors market stats for May show an increase in new listings which is very good news. There were 3,797 new listings in May which is up 9% over last May and we are up by 7% year to date.


Even with the increase in new listings, the inventory of homes for sale is down 9% from last May to 8,398 properties. There are 3.4 months of supply of inventory which is down 13% from last May. A balanced market is 5 to 6 months of inventory. The shortage of homes for sale is most acute in the price ranges under $300,000.


There is plenty of buyer demand. There were 2,996 contracts written in May which is an 11% increase over last May. Pending sales are up 6% year to date.


There were 2,748 closed sales in May which is down 6% from last May. We are down 1% year to date. I believe we will see the closings increase over the next few months. The pending sales increased dramatically in March, April and May and the closings should follow soon.


The days on market until sale is down 18% to 60 days. Last May properties were on the market for 73 days.


The prices continue to rise with the median sales price of $225,000 up 6% from last May and 12% year to date. The average sales price is $273,448 which is up 8% from last May and 10% year to date.


To recap, the inventory of properties for sale is low, buyer demand is high and prices continue to rise.


There was an interesting article on USATODAY.com about investing in real estate. There was a study examining single-family homes from 1986 to 2014 (so it included the downturn) which shows single-family homes in large U. S. cities generated about a 9 percent annual return on average. “About half the overall returns came from rental income and half from property appreciation. In other words, part of the return, rental income, comes while you own the property and the rest, any capital appreciation when you sell.” The study shows the expensive metro areas produce the largest capital gains, but heartland cities tended to have larger returns from the rental income component.

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