Real Estate Market Update

July 20, 2021

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“Your talent is God’s gift to you. What you do with it is your gift back to God.” Leo Buscaglia

 

The June Northeast Florida Association of Realtors market stats continue to show rising home prices, a low supply of homes and strong buyer demand.

 

The median sales price for June is $301,000 an increase of 18% over last June’s $255,000. The average sales price is $373,378 which is a 20.7% increase over last June’s $309,269. Pretty staggering increases. For properties that closed in June, 43.3% sold for more than list price.

 

The price increases are driven by high demand and low available inventory. Many experts are predicting the supply of homes will slowly increase. New home construction is increasing. There have been 8,485 building permits issued in the first 6 months of 2021 for the four counties that Northeast Florida Builders Association (NEFBA) tracks. That is over 58% more than the 5,357 permits in 2020 through June.

 

Another good sign for the supply issue is that new listings are up 10.1% over last June with 4,003 new listings. There have been 22,078 new listings in 2021 compared to 21,200 for the first six months of 2020.

 

A survey of Redfin agents shows a slight drop in the percentage of listings engaged in bidding wars. In April, 74.1% of listings had multiple offers, in May it dropped to 72.1% and in June it fell to 65%. It may be buyer fatigue after losing out on several properties or supplies may be increasing some and competition dropping slightly.

 

There were 3,398 pending sales in June in Northeast Florida down 8% from 3,695 last June. We usually see a dip in buyer traffic in June when school gets out and vacations begin. June of 2020 was unusually active as a result of some relaxing of the COVID lockdowns. Year-to-date pending sales are up 18.5%.

 

There were 4,238 homes available for sale at the end of June, down 50% from last June. There is 1.3 months supply of inventory which is down 58.1% from last June but up from 1.2 months in May. A balanced market is 5 to 6 months of inventory.

 

It appears that it will take a few years to get more balance between supply and demand of homes in our area and across the nation. It is unlikely that prices will decline much, if any, until there is a more balanced real estate market.

 

If you have questions or need a trusted real estate advisor, please reach out and we will be happy to share our knowledge as the market continues to change. Have a wonderful summer!

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