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Northeast Florida Market Update | June 2023

July 24, 2023

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“Discipline is choosing between what you want now and what you want most.” Abraham Lincoln

 

 

 

The Northeast Florida Association of Realtors market stats continues to present a unique real estate market in 2023. The median sales price of $360,000 is up slightly (1.4%) from May and down 1.6% from last year. The prices bottomed out at $330,705 in January 2023 and have been steadily rising since. Prices are dictated by supply and demand. Our supply is low, and demand continues to be steady.

 

You may have seen the article in the Daily Record by Gregg Cohen with JWB Companies. He listed several factors that indicate real estate in Northeast Florida is not likely to crash.

 

  • Low inventory levels
  • Surging population growth
  • Strong job market
  • High equity levels in existing homes

 

Brian Buffini also talked about high equity levels in his recent Bold Predictions. He said nationally 39% of homes are owned free and clear, 29% have 50% or more equity in their home which leaves 32% of owners with less than 50% equity. These stats don’t look anything like the Great recession.

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Northeast Florida Market Update | May 2023

June 22, 2023

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“The army of Israel looked at Goliath through the eyes of man and said he’s too big to beat.  David looked at him through the eyes of God and said he’s too big to miss.” Wally Carter

 

It is all about our perspective.

 

The Northeast Florida Association of Realtors (NEFAR) market review for May shows the median sales price of $354,800 is up 4.4% over April and down 1.4% from May 2022. The predictions of large price decreases in our area haven’t occurred.

 

The active inventory of 5,804 properties is up 4.7% from April. This number includes many new construction homes that are not completed. The months supply of inventory of 2.1 months is down slightly from 2.2 months in April. A balanced market is 5 to 6 months of available inventory.

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Northeast Florida Market Update | April 2023

May 23, 2023

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“Intelligence is the ability to adapt to change.” Stephen Hawking

 

The real estate market has given us an incredible opportunity to adapt to change over the last few years.

 

The Northeast Florida Association of Realtors market stats for April show a slight increase in prices of homes, fewer closed and pending sales and a small increase in inventory.

 

The median sales price for April is $339,995 which is down 2.9% from last April and up 2.4% from March. In the National Association of Realtors first-quarter report, nearly seven out of 10 metro markets had home price gains.

 

Locally, active inventory of 5,938 homes is up 4.5% from March. Many of those homes are new construction and not completed. The supply of existing homes is very low because many homeowners with loans well below current mortgage rates are electing to stay in their homes.

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Real Estate Market Update

May 20, 2021

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Posted by in News

“You just can’t beat the person who never gives up.” Babe Ruth

 

If you want to buy a home in today’s market, you should listen to Babe Ruth. Most buyers are having to be persistent and make offers on several homes before they get a home under contract.

 

The Northeast Florida Association of Realtors market stats for April continue to show high demand for homes and limited supply which is causing price increases.

 

There were 3,615 pending sales in April which is up 52% over last April; however last April COVID was a factor in less contracts being written. The year-to-date numbers for pending sales are up 27% so you can see there is increased demand in the four-month period.

 

There were 3,177 closed sales in April which is a 27% increase month-over-month and 20% year-to-date.

 

The median sales price is $284,941 which is up 14% over last month and 12.5% year-to-date. The average sales price is $357,438 which is up 20.5% over last month and 18% year-to-date.

 

The most staggering statistic to me was the percent of properties sold over list price. For the properties that closed in April, 36.9% sold over list price. That is a 142.8% increase over April 2020. The average for the previous 12 months was 13.3% selling over list price.

 

On the supply side, there were 3,991 available homes for sale at the end of April which is down 58% from last April and there are 1.2 months supply of homes for sale. A balanced market is 5 to 6 months.

 

There may be better news coming to help with supply. A survey by Realtor.com indicated more sellers plan to put their homes on the market. Another survey by NerdWallet of 2,127 homeowners shows 1 in 6 (17%) plans on selling their home in the next 18 months. In fact, 45% of those planning to sell say higher asking prices and lower inventory have caused them to sell earlier than initially planned.

 

NAR Chief Economist Lawrence Yun predicts an increase in the 30-year fixed mortgage interest rate to an average of 3.2% in 2021. “As mortgage rates increase, the frenzied multiple-offer situation will become less prevalent by year’s end, as affordability challenges squeeze out some buyers and more inventory reaches the market,” Yun predicts.

 

“With more inventory and some easing in demand, home prices are expected to shift to mid-single-digit appreciation by the fourth quarter and in 2022,” Yun says. He predicts that:

· Median existing-home sales price will increase 7% in 2021

· Existing-home sales will grow by 10% as more homes reach the market

· New home sales will increase by 20%

 

These predictions are great news. In the meantime, if you are interested in buying or selling, please contact a Realtor with knowledge of the market. We would love to help you navigate these interesting times.

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REAL ESTATE MARKET UPDATE

April 23, 2021

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Posted by in News

“God could not be everywhere, and therefore he made mothers.” Rudyard Kipling

 

I wish every mother a Happy Mother’s Day!

 

The Northeast Florida Association of Realtors market stats for March shows 3,782 homes available for sale compared to 9,484 last March, a 60% reduction. It appears the low supply of homes for sale, high buyer demand and rising prices will be with us for several years.

 

The single-family home for sale inventory peaked in 2007 with about 3.7 million homes available nationally and has been dropping since then to 1.07 million homes currently.

 

A great article from The Mecklenburg Times cites the reason for continued buyer demand as low household formation rates following the Great Recession. If the historical household formation rate had continued after the recession, there would have been 5.7 million more households formed.

 

“The mid-2000s financial collapse began a domino effect. Roughly $6 trillion in real estate equity vanished during the housing crash, impacting the ability of many families to pass down wealth to their children. Young people who finished school around the late 2000s faced a soft job market, which can have long-lasting effects on a person’s finances and their ability to start a new household. Previous Zillow research has shown it takes about six years for homeownership rates of those who graduated college during a recession to catch up with those who graduated during better economic times.”

 

The last two years had shown that when the economy is good and most Americans have access to decent jobs, more of them are able to find a home of their own. More Millennials are turning 33 which has been the age most are marrying and starting families. This trend should continue rising for the next three to four years. Add to this the retiring Baby Boomers who are downsizing and the COVID-related moves where people can work from anywhere. The demand should continue for several more years at least.

 

The supply is tight and the demand is strong, so prices are rising. The median sales price is $274,900 up 12.7% over last March. The average sales price is $344,643, up 20.4%. Many buyers are offering to pay more than list price to get the offer accepted among multiple offers. The percent of properties sold over list price spiked 102.1%. In March 2020 14.2% of properties sold over list price and in March 2021 28.7% paid over list price.

 

It is a seller’s market, so if you are considering selling, we are happy to assist you. If you are interested in buying, we are finding ways to get offers accepted. Thank you for your continued trust and please let us know if we can help in any way. Happy Mother’s Day!

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