Davidson Realty, Inc.

The Strong Real Estate Market Continues Through Summer!

July 31, 2019

 | 
Posted by in Ask Sherry, News, Northeast Florida Market Trends

It looks like the strong real estate market in northeast Florida will continue through the summer. The Northeast Florida Association of Realtors market stats for June 2019 shows good buyer demand with 2,966 pending sales which is 11% higher than last June and 7% higher year-to-date.

 

Brian Buffini, a leader in the real estate industry for over 30 years, pointed out the four main indicators of the economy as it relates to real estate. The four indicators are jobs, interest rates, population and consumer confidence. All four are extremely positive right now.

 

Jobless claims are at a 50-year low. Mortgage interest rates are more than 0.5% lower than last year and very low compared to historical rates. The United States population is up 45 million people from 2000 to 2018 and consumer confidence is high.

 

The National Association of Realtors shares some reasons the housing inventory has been shrinking.

  • New-home construction fails to keep pace – Housing starts in 2019 will total 1.3 million and the 50-year annual average is 1.6 million.
  • The aging housing stock – over 50% of owner-occupied homes in the U.S. were built before 1980.
  • Demographic shift – Millennials are now the largest U.S. adult population and they have begun buying houses. Many of the Baby Boomers are staying in their homes longer.
  • Homes turned into rentals – There was a 31% growth in single-family rentals from 2007 to 2016.

Some economists are expecting more inventory of homes in the future, but Realtor.com is predicting home inventory to drop in 2020.

 

There were 3,467 new listings in Northeast Florida in June which is 11% lower than last June; however, we are still 2% higher year-to-date. The inventory of homes for sale is 9,226 homes which is 5% lower than last June. The months supply of inventory is 3.5 months which is down 10% from last June. A balanced market is 5 to 6 months of inventory.

 

Enjoy your summer and please let us know if we can help you with any of your real estate needs.

, , , , , , ,
(0) Comments
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • email
  • LinkedIn
  • StumbleUpon
  • Twitter
  • Yahoo! Bookmarks
  • Yahoo! Buzz
About the Author
Sherry Davidson
President of Davidson Realty

Since launching Davidson Realty in 1989, Sherry Davidson has built the firm to include nearly 60 agents and exceed $100 million in annual sales. She is known throughout the First Coast as an authority on all things residential real estate, having served on the Board of Directors for Northeast Florida Association of Realtors, Florida Realtors® (a division of the National Association of Realtors), and Builders Care (charitable arm of Northeast Florida Builders Association).

Thanks to Sherry’s leadership, Davidson Realty has been recognized as one of the state’s Best Companies to Work For (Florida Trend Magazine), as well as one of the region's Best Places to Work and 50 Fastest Growing Companies (Jacksonville Business Journal). Get to know Davidson Realty’s talented team of agents by clicking here or call us at (904) 940-5000.

Comments are closed.

Davidson Realty