The Real Estate Market: How Long Will This Go On?

June 28, 2021

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The story of the real estate market has kept most real estate professionals and home buyers and sellers on the edge of their seats. With such unprecedented and unpredictable times, the biggest cliffhanger is: How long will the real estate market stay like this? 

 

There is no doubt that the real estate market has remained strong for longer than most predicted. “I believe the housing market could remain strong for a while longer. Currently, there is only a 1.1 months supply of homes available in our area. When a balanced market is between 5 to 6 months of inventory, it is clear that demand is still very strong for homes in Northeast Florida,” shares Sherry Davidson, President of Davidson Realty. Additionally, home builders have been building fewer new construction homes since the Great Recession which equates to 4 to 5.5 million fewer homes built, based on historical averages. 

 

As the market has continued to stay strong, more people are getting more “comfortable” with the current real estate market conditions. “Three different surveys indicate more sellers plan to put their homes on the market. This, coupled with homebuilders increasing the pace of new construction, will help increase the supply of homes for sale,” shares Davidson. “Interest rates may rise slightly which may slow demand. I predict we will see more normality in the real estate market by the end of this year or 2022,” Davidson continues. 

 

Because of the increased demand, home prices have been on the rise! “We have been seeing double-digit price increases during this time in the real estate market,” shares Davidson. The National Association of Realtors Chief Economist, Lawrence Yun, predicts we will see median existing-home sales prices increase more than 7% in 2021. 

 

With the increase in home prices, those who have taken advantage of this seller’s market are finding it difficult to buy a new home. While some secured a home prior to selling, many are seeking rental homes or staying with family to buy some time. “If you want to avoid the multiple offer situation and frantic pace of the market, we may see less craziness as we get more inventory. Regardless, now more than ever before you need a real estate professional to help you navigate the market,” shares Davidson. 

 

This time in the real estate market will likely be a period that will go down in history as a story full of twists and turns. If you or someone you know is interested in buying or selling their home, contact the Northeast Florida real estate experts at Davidson Realty today at (904) 940-5000. 

 

 

NORTHEAST FLORIDA BUILDERS ARE TRYING TO KEEP UP WITH THE DEMAND FOR NEW HOMES. HERE’S HOW SOME BUILDERS ARE MANAGING THE PROCESS.

June 23, 2021

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Persistence and patience are the name of the game in the current real estate market as every corner of the industry has been rattled by uncertainty as a side effect of the COVID-19 pandemic. 

 

“The Northeast Florida real estate market is as hot as many in our industry have ever seen,” shares Davidson Realty President, Sherry Davidson. “There are not enough homes on the market to satisfy buyer demand. Resale homes coming available are getting multiple offers usually within hours to a day and offers are mostly above list price. In May of this year, more than 41% of homes closed were over asking price,” Sherry continues. Even the new construction housing market has experienced challenges that are requiring home seekers to adapt. We’ve connected with some of the talented home builders in Northeast Florida to get an update on their current conditions. 

 

Riverside Homes

“Riverside Homes continues to see very strong demand and we have made a few changes to our process to ensure the very best quality homes and provide the great building experience the people expect from Riverside Homes. We limit the amount of sales in each of our communities so we can keep a smooth process for permitting and building our homes. We closely monitor increasing supply costs each month doing our best to offer the most competitive home pricing,” shares Riverside Homes Sales Manager, Jacki Matthews. Despite the building supply shortages plaguing builders across the country, Riverside Homes promises to maintain the integrity and quality of their homes. 

 

Ashley Homes

Ashley Homes experienced a surge in sales and are currently sold out in Silverleaf, and have been since February 2021. “During the pandemic, we had no limits on sales and sold everything that we had available. Ashley Homes includes escalation clauses in many of our contracts, as do other builders, to protect us and our buyers from unforeseen lumber and material increases. Our buyer may pay a modest increase just to cover the rising material costs, but Ashley Homes has no profit added, shares Ashley Homes’ very own Greg Souris. Ashley Homes is navigating the home building process with their buyers, many who have seen more than $40,000-$50,000 increase in their home value before their home construction even started. 

 

Providence Homes

“In E-Town we are not limiting pre-sales or inventory homes, however, some of our policies have changed on when we can release inventory homes for sales. In Nocatee, we are limiting the pace of sales so we can manage the construction process,” shares Brenda Harris, Sales Associate at Providence Homes. Build time is approximately eight months, but Providence Homes is asking for flexibility and understanding from customers as material shortages could cause delays. 

 

MasterCraft Builder Group

Brad Shee, MasterCraft Builder Group President, shared, “The shortage of materials began in March 2021 as suppliers burned through inventory. Based on the lumber futures chart, lumber prices should start dropping. Because of the shortages, MasterCraft Builder Group is limiting sales each month in TrailMark and Rivertown.” The demand for homes in Northeast Florida is unprecedented, but it’s no surprise as the attraction to the First Coast is clear from the ocean to the river to the affordable cost of living. 

 

With more than 30 years of experience, Davidson Realty has cultivated strong relationships with some of the area’s leading home builders in Northeast Florida. Davidson Realty Agents know the new constructions market in Northeast Florida and can help you find the perfect lot and design to fit your needs. “Our agents are constantly talking to builder site agents to stay current on which builders have inventory and how they are managing the sales process. This constant communication allows our agents to know if a sale falls through, what is available, and the timing and process of the homesites that will be released so our clients can take advantage,” shares Sherry Davidson. 

 

The real estate experts at Davidson Realty will be by your side throughout the construction process to ensure your expectations and vision comes to life! For more information on new construction homes in Northeast Florida, call Davidson Realty at (904) 940-5000.

Northeast Florida Real Estate Market Update

June 18, 2021

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“Dad: A son’s first hero, a daughter’s first love.” —Unknown

 

I want to wish a Happy Father’s Day to every Dad because you are incredibly special.

 

The Northeast Florida Association of Realtors market stats show that new listings of 3,785 are up 12.7% over last May and we are up 1.9% year-to-date. The Northeast Florida Builders Association shows building permits through April of 5,170 permits which is a 45% increase over the same period last year.

 

While new listings and new construction is great news, the inventory of available homes continues to fall. There were 3,847 homes available for sale in May compared to 9,147 last May for a 57.9% reduction. There is 1.1 months supply of inventory available. A balanced market is 5 to 6 months of inventory.

 

The reason inventory continues to fall is the increased demand. There were 3,672 pending sales in May which is up 18.5% over last May. Pending sales are up 25.5% over the same period year-to-date. The 3,276 closed sales are up 37.2% over last May and 25.0% over same period year-to-date.

 

The median sales price of $290,000 is up 16.9% over last May and the average sales price of $363,044 is up 26.1% over last May. A staggering 41% of homes closed in May sold over their list price.

 

The median sales price in May by county:

Baker $264,900

Clay $277,500

Duval $260,000

Nassau $344,893

Putnam $156,000

St. Johns $415,000

 

Many of the builders are limiting their sales currently due to supply and labor issues. While we keep hearing about lumber shortages, the National Association of Home Builders reports that appliances are the biggest issue with lumber a very close second. A key reason for the appliance shortage is the computer chips, which most now require.

 

The market still favors sellers; however, with some persistence, many buyers are successfully getting the home they want under contract. If we can help you with a purchase or a sale of your home, please let us know.

 

Please save the date for our Davidson Cares Clay Day 2021. Our event is October 21, 2021 at Jacksonville Clay Target Sports.

 

Happy Father’s Day!

CONGRATULATIONS TO OUR TOP PRODUCERS FOR MAY!

June 15, 2021

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I know you have seen all the news about how few homes are available and the market being an extreme seller’s market. I just want you to know how hard real estate agents are working right now to find buyers a home and get it under contract or helping sellers through the process of getting their home sold and closed. With that in mind, I want to recognize our Top Producers who have earned every accolade this month.

 

The Top Producer, Top Sales Agent and Top Listing Agent is Mirtha Barzaga. Mirtha had $3 Million in closings and over $2 Million in sales for the month. Her past customers and referrals helped her get listings in this market and give her buyer customers the confidence that they will find a great home.

 

 

 

The Top Producing and Top Sales Team is The Nemethy Group. Shelley and Tim Nemethy had almost $5 Million in sales for the month. The Nemethys have built their business on relationships and referrals which allows them to be a trusted resource for their customers. Even though they are top producers, they take great care of every customer.

 

 

 

Our Jacksonville Beach Team Top Producer and Top Sales Agent is Jennifer Todd. Jennifer knows the beaches but also helps customers from Amelia Island to St. Johns County. Her knowledge of new construction and the area serve her customers well.

 

 

 

If you have questions about your homes value or anything real estate related, please let one of our experienced and knowledgeable agents help.

The Things You Might NOT Know About the Real Estate Market in Northeast Florida

June 3, 2021

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The real estate market is notorious for its ups and downs, however, this real estate market is unique. Inventory is low, demand is high, and homes are FLYING off the market faster than ever! With so much uncertainty in this unprecedented market, it’s more important than ever to have a trusted real estate expert by your side to navigate the market.  Northeast Florida real estate expert Sherry Davidson, President of Davidson Realty, is answering some of the most common real estate questions from the community. 

 

How can I figure out how much my home is worth? 

Your home’s value is whatever the market is willing to pay. The market is changing very rapidly. It is in your best interest as a home seller to have a trusted real estate expert that knows the current market by your side to help you place a value on your home. Our team is selling homes daily and has the knowledge to ensure your home sells for TOP DOLLAR! 

 

Should I sell my home before buying a new one? 

The answer to this question has always been, YES! However, in the current real estate market conditions, the answer depends on your situation. If you sell, you need to have a rental home lined up or have the ability to live with family until you find your next home. If you put a new home under contract, you will probably not get a contingency to sell your existing home. You will risk losing your escrow deposit if you can’t close or you will have to acquire a bridge loan, extra savings, or a gift to close on the new home before you have the closing on your existing home.

 

Is World Golf Village expanding? 

With a few small exceptions, the only portion of World Golf Village not built out is Trailmark. There are new phases of homesites still becoming available in Trailmark.

 

What is the next go-to area to move to in Northeast Florida? 

There are so many incredible communities in Northeast Florida. However, Silverleaf is extremely popular right now. Silverleaf is located in highly desired St. Johns County, Florida, and just minutes from various shopping centers, beaches, golf courses, and entertainment.   The community will also be home to a first-class amenities center for residents to enjoy! 

 

If you are interested in buying or selling a home or have further questions about the market, contact Davidson Realty at (904) 940-5000.

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