June 2020 Northeast Florida Market Stats: Buyer Demand is Strong.

There is a lot to take in these days. Looking at the first half of 2020 Northeast Florida Association of Realtors market stats, there is a lot to smile about.

Buyer demand is strong thanks to record-low mortgage rates and being quarantined in less-than ideal homes. “Flight to the suburbs is real,” says Robert Dietz, National Association of Homebuilders (NAHB) Chief Economist. “New home demand is improving in lower density markets, including small metro areas, rural markets and large metro exurbs, as people seek out larger homes and anticipate more flexibility for telework in the years ahead.”

The NAHB Housing Market Index rose to 72 in July for a sharp increase over June’s reading of 58. The Housing Market Index measures homebuilder sentiment. A reading over 50 indicates more builders are optimistic about the housing market than pessimistic.

The Northeast Florida Builders Association shows 5,357 housing permits for the first half of the year up 4% from 5,152 permits in the first half of 2019.

The low mortgage rates are also driving demand. Freddie Mac (FMCC) showed the average 30-year fixed mortgage rate fell to 2.98% in mid-July. This marks the third-straight week that mortgage rates have hit a record low.

The pending sales in June for Northeast Florida jumped to 3,626 contracts written. That is up 22% over the 2,974 contracts in June 2019. Year to date there were 17,168 contracts written up 0.7% compared with the previous year.

There were 3,021 closed sales in June almost the same as 3,024 last June. Closings year-to-date are down 6% from the same period last year. Even with COVID-19 cases trending up, it appears overall closings for the year will exceed 2019.

The average sales price of $310,822 is up 4.4% over last June and the median sales price of $255,000 is up 5.4% over last June.

The inventory of homes for sale is down 24% to 7,545 homes. This is a 2.8 months supply of homes which is down 26% from last June. A 5 to 6 months supply of homes is considered a balanced market. The shortage of available homes is great news for sellers. Most homes coming on the market are selling very quickly.

All the northeast Florida real estate trends are very positive. If you are considering buying, selling or renting a home, please let us know if we can assist you. Enjoy your summer!

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About 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.

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