Davidson Realty, Inc.

Our Agents Answer Six Common Real Estate Questions

November 8, 2021

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Posted by in News, Northeast Florida Market Trends, Staff

For nearly two years, seemingly every industry has had to deal with unprecedented changes. The real estate industry is no exception as inventory of homes for sale and interest rates were at historic lows causing the market to be fiercely competitive. As the story of the real estate market continues to unfold, it’s vital to have an experienced real estate professional by your side. Northeast Florida real estate experts at Davidson Realty are answering some of the most common real estate questions. 

 

When is the best time to sell a home?

“Quite a few people have asked me this lately and, honestly, in Florida or at least in our area, our selling season is year-round. Especially with the low inventory, we are experiencing, there doesn’t seem to be a wrong time to sell your home. Buyers are watching the market very closely for new listings to pop up. Some markets may slow down in the winter, but we have snowbirds who begin their search in January,” shares agent Shelley Nemethy. 

 

With the current market, should I still buy a new home before I sell my old one?

“If your current home is in an active community and in excellent condition, buying a new home before selling your current home could certainly be an option. However, if it is too much of a financial risk to put yourself in, in the event you had to carry both mortgages, I would advise against it,” shares agent Jennifer Todd. 

 

Is it still a seller’s market?

“It is still a seller’s market. Until we begin seeing a more balanced inventory in homes available, it will continue to be a seller’s market,” continues Nemethy. 

 

How should I prepare my home before selling it?

“Pack away or get rid of all clutter. The removal of clutter and items that you don’t need on a daily basis will enlarge your home. Eliminating excess furniture can also make a huge difference in how a home shows, “ shares agent Lynn Whitley. “You will recoup the cost of renting a storage unit and you will be a step ahead on packing when you accept an offer.”

 

What is your best advice for current home sellers?

“I suggest pricing your home to the current market and letting the market take the price to where it should be,” continues Todd. “ Always have your home spotless, no one wants to buy a dirty home!”

 

What is your best advice for current homebuyers?

“Hire an experienced real estate agent that knows how to help a buyer bid and win in this current competitive market. You’ll be glad you did,” continues Nemethy. 

 

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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Real Estate Market Update

October 19, 2021

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Posted by in News, Northeast Florida Market Trends

“In playing ball, and in life, a person occasionally gets the opportunity to do something great. When that time comes, only two things matter: being prepared to seize the moment and having the courage to take your best swing.” – Hank Aaron

 

A lot of wisdom from Hank Aaron. I hope you are enjoying watching the MLB playoffs.

 

The Northeast Florida Association of Realtors market stats for September show similar trends to the last few months. Prices are still rising at double-digit rates, with plenty of buyer demand, and a small supply of homes available.

 

The median sales price in September is $307,230 setting a record. This price is $7,000 more than August and $50,000 more than January 2021. This is an increase of 19.7% over last September.

 

The average sales price in September is $370,751 which is up 16.9% over last September. Numbers don’t always tell the human impact. We are seeing so many buyers on the sidelines right now because the homes they would like to buy between $300,000 and $400,000 are very difficult to find and get an offer accepted.

 

Our local buyers are competing with the strong influx of out-of-town buyers who consider our local area home prices more affordable compared to their previous market. The buyers wanting to use VA or FHA financing are also struggling because most sellers prefer cash or a conventional loan.

 

Affordability has impacted pending sales which were 3,201 in September, down 5.1% from last September, but up 10.9% year-to-date. Also, closings of 2,945 down 12.5% from last September, but up 12.9% year-to-date.

 

We are still seeing multiple offers, with 35.5% of homes selling over list price but that is down from 44.3% in July and 40.6% in August. Homes are still selling quickly with days on market at 30 days down 51.6% from last September when it was 62 days.

 

The market has calmed a little and possibly more buyers that have been sidelined will be able to find the home they want. I am very optimistic about the Northeast Florida real estate market. It is a great time to sell. Please let us know if we can assist you in any way.

 

Thanks for all the support of Davidson Cares Clay Day! We sold out for the first time ever.

 

A group of Davidson Realty agents are participating in the Walk to End Alzheimer’s on Saturday, November 6th at UNF. My mother and so many others suffered from this horrible disease. We would love to have you join us!

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Real Estate Market Update

September 22, 2021

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Posted by in News, Northeast Florida Market Trends

“Fear does not stop death. It stops life. And worrying does not take away tomorrow’s troubles. It takes away today’s peace.” Unknown

It is easy to agree with the truth of this quote, but much harder to live it.

 

The Northeast Florida Association of Realtors market stats for August continue to show rising prices, continued high buyer demand, and low inventories of available homes. The most recent trend we are seeing is double-digit rent increases.

 

“Put simply, August trends suggest rents are making up for lost time. Rents remained low during some of the worst months of the pandemic, growing at a sub-2% pace from September 2020 to March 2021, which is also when for-sale home prices were growing by double-digits,” said Realtor.com Chief Economist Danielle Hale.

 

Many buyers are unable to find a suitable home to purchase and have been forced into the rental market. According to Apartment List, rents in Jacksonville have risen 19.7% since August 2020, and 4.4% since July 2021.

 

There were 3,787 new listings in August, up 5.7% from last August and 6.7% year-to-date. The builders are also adding more homes. Industry sources predict an 11% to 12% increase in housing starts for 2021 or about 1.55 million units. That would be up from 1.38 million housing starts in 2020, which was a 7% increase over 2019. (Business Journal article) Builders are still being delayed by materials like windows and appliances and labor shortages.

 

The good news for buyers is that the frenzy of competitiveness of the spring market has cooled a bit. Some sellers are still pricing their homes very high, but many buyers are no longer willing to pay the prices they were during the spring and the homes are sitting or the sellers are reducing the price. While 41.0% of homes sold over list price, that is down from 44.8% in July.

 

There were 3,424 pending sales down 2.0% from last August, but up 12.4% year-to-date. Closed sales of 3,200 were down 3.1% from last August, but up 15.6% year-to-date.

 

The median sales price of $300,000 is up around 14% month-over-month and year-to-date. The average sales price of $362,699 is up 14.2% month-over-month and 17.7% year-to-date.

 

There are 4,651 homes available for sale which is down 37.2% from last August and we have 1.4 months of supply available. Five to six months is a balanced market.

 

While we are seeing more homes come available, the buyer demand remains very strong. We should continue to see prices increase, multiple offers, and increased rental rates.

 

Please come join us on October 21st for our major fundraiser, Davidson Cares Clay Day. We support Builders Care, St. Augustine Youth Services, and Investing in Kids. Go to DavidsonCares.com and register or buy a raffle ticket for one of our great prizes.

 

We appreciate your support and referrals. Please let us know if we can assist you in any way.

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Pros and Cons: New Construction vs. Resale

July 2, 2021

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Posted by in New Home Construction, Northeast Florida Market Trends

Owning a home is likely more difficult now than ever before. With the slim inventory of homes for sale, homes are FLYING off the market. From the rise in home prices to competitive bidding wars, homeowners have to wonder: is it worth just buying new construction?

 

“This question is tough to answer these days. The inventory is slim and prices have gone up on both sides. For most buyers, timeline is the key decision driver when choosing between new construction or an existing home,” shares Davidson Realty agent Shelley Nemethy.

 

 

Pros of Building New Construction 

  • Newness – When buying new construction, you’ll be the first to call this house HOME! Buyers buying new homes enjoy the peace of mind of having a warranty through the builder and fewer renovations.
  • Design – New construction homes also often feature more modern architecture and floorplans. You’ll find more open floor plans, additional bathrooms and spaces that can adapt to the needs of your family. New homes will leave you and your family only to make minor modifications, if any, to feel at home.

 

Cons of Building New Construction

  • Supply Shortages – Due to the Covid pandemic, many industries have experienced limited supply, delays, and labor restrictions. This has trickled down to impact home building as the cost of lumber, metal and other supplies have been affected by the pandemic. In turn, the decreased supply has increased cost which of course is passed along to the homebuyer.
  • Longer Timeline – With a new home build, homebuyers usually have to wait months to get into a new home. With the current shortage of supplies, there is an even greater risk of delays. Some homebuilders limit the number of lots available for sale in an effort to keep on schedule. “If you have time to build, you have more time to save money for closing costs,” shares Davidson Realty agent, Terri Apodaca.

 

Pros of Buying Resale

  • Shorter Timeline – When buying a resale, the closing day is often negotiated in the offer. Typically, new home owners gain possession in one to two months after their offer is accepted.
  • Character – Existing homes generally have more traditional layouts and features that elevate the home. These charming touches provide a unique dimension to an existing home.
  • Location – “Older homes are often in areas more convenient to metro areas and in more established neighborhoods with more development surrounding. Yards are typically more spacious with mature landscaping. Buyers also won’t have to worry about the congestion of construction taking place,” shares Apodaca.

 

Cons of Buying Resale

  • Competitive Market – With so few homes for sale, most homes are receiving multiple offers. Prospective home buyers have to be patient, persistent, and ready to make their best offer quickly to achieve their dream of owning a home.
  • Increasing Home Prices – As a side effect of the low supply and high demand for homes, home prices have skyrocketed making it harder to afford a home that would normally be in reach.
  • Home Improvements – Often buying a resale comes with a few compromises. Upgrades, remodels, and projects could be on your to do list after closing to make your new home the home of your dreams.

 

If you are interested in buying or selling in Northeast Florida, trust the real estate experts at Davidson Realty. Davidson Realty has more than 30 years of experience and has built strong relationships with many of Northeast Florida’s leading home builders. This advantage along with their extensive experience buying and selling resale homes, make them the perfect partners to help you navigate the real estate market. For more information, contact Davidson Realty at (904) 940-5000.

 

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

June 28, 2021

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Posted by in New Home Construction, News, Northeast Florida Market Trends

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. 

 

 

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