Northeast Florida Real Estate Market Update

November 19, 2021

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“Gratitude can turn common days into thanksgiving, turn routine jobs into joy, and change ordinary opportunities into blessings.” -William Arthur Ward

I rely on the Northeast Florida Association of Realtors (NEFAR) market statistics in my analysis each month. NEFAR has changed the company providing the statistics and the information is now interactive and allows you to choose property type, County, or region. Go to NEFAR.com and click on the market stats tab to check it out.

 

The median sales price of $310,000 is up 17.8% from last October, but unchanged from last month. Of the closings in October, 28.5% closed over list price. This is up 103.2% from last October, but down 7.3% from last month.

 

The inventory of homes for sale continues to be extremely low. There were 4,270 active properties for sale which is down 31.1% from last October and 7.9% from last month. The 1.4 months of inventory available is also down 25.8% year over year and 9.5% from last month.

 

The Northeast Florida real estate market may see smaller price increases and fewer multiple offers, but there is still a strong imbalance between buyer demand and homes available. It is still a seller’s market.

 

I wanted to share some interesting information from the 2021 National Association of Realtors (NAR) Profile of Home Buyers and Sellers. Jessica Lautz, Vice President of Demographics and Behavioral Insights at NAR, says both buyers and sellers “have been driven by the desire to be close to family and friends, as well as the need for a larger home” during the pandemic.

 

Of the sellers who also became buyers, many traded up to bigger, more expensive, and often newer homes, with 46% purchasing a larger home and 28% one of the same size. In the past years, convenience to work and affordability had ranked as top factors for reasons to move.

 

The pandemic likely spurred occupants to shorten their homestay, as tenure in the home decreased to eight years from 10 years, according to the report – the largest single-year change in home tenure since NAR began collecting such data. Historically, tenure in the home has been six to seven years, but it increased to nine to 10 years following the Great Recession.

 

It will be interesting to see how remote work opportunities play out in the future. It seems like employees and companies are still figuring out the new rules and how that will affect home sizes and locational choices.

 

I want to express my gratitude for your friendship and support in 2021. Davidson Cares raised $75,000 at our Clay Day thanks to all the generous people in northeast Florida. Have a wonderful Thanksgiving holiday!

Our Agents Answer Six Common Real Estate Questions

November 8, 2021

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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.

Real Estate Market Update

October 19, 2021

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“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!

Real Estate Market Update

September 22, 2021

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“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.

Real Estate Market Update

August 23, 2021

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“Your reputation is what people say about you. Your character is what God knows about you.” Bobby Bowden

 

Whether an FSU fan or not, most people respect and love Bobby Bowden.

 

The Northeast Florida Association of Realtors market stats for July have a few interesting twists. Prices continue to rise, pending and closed sales are down compared to July 2020, and new listings are up.

 

New listings of 3,915 are up 6.9% month over month and 5.3% year to date. The inventory of homes for sale of 4,668 is up slightly from the June number of 4,586. It is still down 40.6% from last July. The months supply of inventory is at 1.4 months which is the same as June but down 50% from last July. Since 5 to 6 months supply of inventory is a balanced market, we are still in a seller’s market.

 

There were 3,287 pending sales in July down 10.6% from last July. However, pending sales are up 13.4% year-to-date. There were 3,149 closings in July down 16.2% from last July but we are up 16.7% year-to-date. The month-to-month comparisons are difficult to interpret because last June and July were the two highest months for sales last year and July was the highest month for closings as a result of the slowdown in April and May 2020 due to Covid.

 

NAR’s chief economist, Lawrence Yun is predicting interest rates to increase to 3.3% by the end of the year on 30-year fixed rate mortgages and average 3.6% in 2022. He predicts existing-home sales will decline marginally from 6 million in 2021 to 5.99 million in 2022.

 

Dr. Yun also predicts housing starts will improve to 1.65 million in 2022 from 1.565 in 2021 and existing-home prices will increase at a slower pace of 4.4% in 2022 compared to 14.1% in 2021.

 

The July median sales price is $303,600 up 15% month-over-month and 13.7% year-to-date. The average sales price is $381,499 up 18.4% month-over-month and 18.6% year-to-date. An amazing 45.6% of listings sold for an amount over list price.

 

It does appear the speed of the market is slowing a little and there may be more opportunities for first-time homebuyers and buyers using FHA or VA loans. Sellers were seeing so many cash offers and conventional loans, that many didn’t want to accept government backed loans because of their inflexibility. The market calming down a little will be good for everyone.

 

Please take a minute to go to DavidsonCares.com and sign up for Clay Day on October 21st or buy a ticket to one of our raffles. We have our YETI cooler full of alcoholic beverages and tickets for 8 people at Concerts for a Cause which is an amazing event watching live music outside.

 

Have a great Labor Day holiday and enjoy the rest of your summer. Please let us know if we can help you with any real estate questions.

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