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.

Davidson Cares Continues to Strengthen the First Coast

September 9, 2021

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Davidson Cares is dedicated to supporting and uplifting youth throughout Northeast Florida. Since 2012, Davidson Cares has tirelessly worked to strengthen families and children by raising funds for local programs including public schools and non-profit youth organizations. 

 

With the help of the First Coast community, Davidson Cares has raised more than $260,000 to help support vital programs. This incredible work would not be possible without the Davidson Cares Board of Directors. Together, this team of twelve has gone above and beyond to help pursue the mission of Davidson Cares. The board recently welcomed four new board members and looks forward to continuing to raise money for worthy causes at the Davidson Cares Clay Day on October 21, 2021. In addition to the Board Members we previously introduced, these long-standing board members bring a wealth of knowledge and commitment to Davidson Cares. 

 

Troy Silhan

Troy Silhan is a Mortgage Banker with Bank of England Mortgage. Since joining Bank of England Mortgage in 2009, he has closed more than 1,400 purchase and refinance transactions all over the country, totaling more than $250 million dollars. For four consecutive years, Troy has been named #1 Loan Officer in the 904 by Void Magazine. Troy is a Florida native, who earned his degree in Communications and Business Management from the University of North Florida. He is married to his college sweetheart, Jessica, and they have two amazing children. He believes in achieving success by treating others how you would want to be treated.

 

 

Peyton Davidson

Peyton Davidson is a Jacksonville native and holds a BS in Advertising from the University of North Florida. She has spent the last twelve years leading marketing programs in the real estate, development, and homebuilding industries. She is currently working as the Marketing Manager for Providence Homes, Jacksonville’s leading home builder in energy efficiency. In her free time, Peyton enjoys watching college football and taking her English Bulldog, Sir Chumwell, swimming at the beach. She is also involved in many charitable efforts including St. Augustine Youth Services, SMC Cares, and Builders Care.

 

Jim and Andrea Gallagher

Originally from the New England area, Jim and Andrea Gallagher relocated to Florida in 2005. After spending nearly two years in Sarasota, the Gallaghers established roots in St. Augustine, where they live to this day. Jim is currently the Vice President and Branch Manager at the Charles Schwab Jacksonville Branch and Andrea is the Sales and Training Manager at Davidson Realty. Jim and Andrea have been married for more than twenty-five years and have two amazing children; Jay, who is 21 and a senior at Florida State University, and Gillian, who is 16 and a junior at Nease High School. Jim and Andrea enjoy the outdoors and have fully embraced the Florida beach lifestyle! They are also deeply devoted to their New England sports teams as well as Florida State University.  

 

 

Davidson Cares is fortunate to have these incredible Board Members who are passionate about helping youth and families in Northeast Florida. Support the efforts by joining Davidson Cares for Clay Day 2021 on October 21st!

Upcoming World Golf Village Office Park is a Welcomed Solution for Much-Needed Office Space in St. Johns County

August 31, 2021

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Posted by in News

Northeast Florida is a vivacious area with new developments popping up all over town. A new office park development, WGV Office Park, has sparked excitement in St. Johns County. Located at the entrance of the King & Bear, this five-building office park will total more than 44,000 square feet of much-needed office space in the area.

 

“The owners purchased the land at the beginning of July 2021 from Fletcher Davis. At that time they partnered with Matt Harkins of DL Harkins Construction out of Orlando on the project. Matt has a great deal of experience with developing office condos and has been involved in many successful projects,” shares Sam Davidson, Realtor® at Davidson Realty and Vice President of Special Operations for Davidson Development. “Right now, the project is in final review from the county and is expected to break ground in November 2021. Work on the first two buildings will begin approximately thirty days later with delivery scheduled for Spring of 2022.”

 

Occupants of the office park will have a space built to last as the buildings will have concrete block walls and Hollow Core System roofs. They will also be just across the street from Publix-anchored Shoppes at Murabella and a surrounding community that is growing fast both residentially and commercially.

 

“It should be a huge benefit to both World Golf Village and the surrounding area. There is a real lack of office space in St. Johns County as a whole and especially in the World Golf Village area. This will allow local residents to work closer to home and serve their friends, family, and neighbors,” shares Davidson. “It will also help bring much-needed support services such as attorneys, doctors, and insurance agents to the community. This project has been designed with spaces starting at 1,120 square feet and going up to 12,000 square feet, which allows for the ability to accommodate companies of all sizes.”

 

If you are interested in owning an office condo in the new WGV Office Park, contact Sam Davidson at (904) 502-2397 or jsdavidson@davidsonrealtyinc.com or Tim Nemethy at (904) 553-6194 or tnemethy@davidsonrealtyinc.com

Pros and Cons: New Construction vs. Resale

July 2, 2021

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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.

 

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. 

 

 

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