As fall fully settles in, the real estate market is showing some exciting shifts. Whether you're buying, selling, or just keeping an eye on trends, this is the perfect time to see how the season is affecting the market. In this edition, we'll dive into the latest on interest rates, inventory, and pricing trends as we head into the final stretch of the year. Stay tuned for all the insights you need to navigate the market this season!age rates. Our insights will guide you through these changes with confidence.
September saw 9,588 active listings, up 2% from August and a significant 30% increase compared to September of last year. This increase in supply is creating a more buyer-friendly market, providing more options for those looking to purchase. Despite the uptick in inventory, the median sales price dipped slightly to $351K, down 1% from last month and from September 2023.
This increase in available homes could give buyers more negotiating power, as sellers may need to adjust prices or offer concessions to stand out in a more competitive market.
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Demand Dynamics and Sales Projection:
Closed sales in September slowed, with 1,982 homes sold, a 15% decrease from August and a 9% decrease compared to last year. This drop in demand is typical for the fall season, but the combination of rising supply and fluctuating rates could set the stage for more buyer activity in the near future.
The average days on market increased to 44 days, up from 41 days in August and 36 days last September. Homes are staying on the market longer, giving buyers more time and leverage to make informed decisions and negotiate better terms.
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In September, mortgage rates continued their downward trend, with the average 30-year rate dropping to 6.20%, a significant 5% decrease from August and a 14% drop from the same time last year. This decline spurred a 14% increase in mortgage applications as buyers jumped on the opportunity to lock in lower rates.
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However, as we entered October, rates have already seen a slight increase, indicating that the window for securing these historically low rates may be narrowing. The rate rebound could continue if strong economic data or inflationary concerns push borrowing costs higher. For buyers looking to capitalize on lower rates, now might be the ideal time to act before any further rate increases take hold.
Now, let's delve into some fascinating details about homes sold in September:
September Pricing Power Overview:
In September, pricing power continued to favor well-priced homes, especially those that sell quickly. Homes that sold within the first 30 days on the market fetched an average of 97% of their original list price, with average seller concessions at $6,841. However, the longer a home sits on the market, the more concessions sellers need to offer, and the lower the selling price relative to the original list price.
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Homes on the market for 60-90 days sold for 91% of their original list price, with concessions averaging $7,682.
Homes on the market for over 150 days sold for 88% of their original list price, with seller concessions averaging $9,018.
The data makes it clear: pricing homes correctly from the start is crucial for sellers to avoid extended days on market and increased concessions. The longer a home sits unsold, the higher the likelihood of price reductions and concessions to close the deal. Sellers should be mindful of these trends, particularly in a market where 53% of active listings are now considered "stale" (on the market for over 60 days), up from 47% in the previous month.
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Key Takeaways:
Price Competitively: Homes that are priced right sell quicker and with fewer concessions.
Monitor Days on Market: Once a listing goes beyond 30 days, sellers face increasing concessions and a lower final sale price.
Stale Listings Rising: With 53% of listings now considered stale, the market is becoming more competitive, making proper pricing more important than ever.
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September Sales Snapshot:
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63% of sales fell between $200K - $500K, holding steady from previous months.
119 sales were over $1M, an increase from 101 in August.
25% of sales were cash transactions, a slight dip from 26% last month.
Sold to Original List Price Ratio remained unchanged at 94%.
32% of properties included seller concessions, down from 38% in August.
The average seller concession was $10.9K:
New construction concessions averaged $15K (up from $14.1K).
Existing home concessions increased to $9.6K (up from $7.3K).
New construction accounted for 32% of all sales, up from 23% the previous month.
This data indicates that while the market remains stable, higher-priced homes and new constructions are becoming more active, with slight increases in seller concessions. Pricing homes accurately remains crucial as the market transitions into the fall season.
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In September, the average home price reached $464K, marking a 2.5% increase year-over-year, while the median price fell slightly by 1.3%, landing at $352K. These changes suggest that while the higher-end market has experienced price growth, overall, the broader market saw some softening in the middle range.
This indicates a balanced market where both buyers and sellers have opportunities to benefit.
Now, let's take a closer look at October so far:
For October, we're starting to see some interesting shifts in the market:
Active Listings: Over half of the available listings (57%) are priced between $200K and $500K, which is consistent with last month. New construction homes continue to represent 23% of all active listings, and condos make up 13%, also unchanged.
County Trends: While Duval and Nassau counties saw slight increases in listings (+1% and +2%, respectively), Baker and St. Johns counties experienced decreases (-4% each). Clay County dipped slightly with a -1% change.
Stale Listings: A notable trend this month is the increase in stale listings, with 53% of active listings being on the market for more than 60 days, up from 47% last month. This signals that many homes may be priced too high or may require additional incentives to attract buyers.
These numbers suggest that buyers have more options, but sellers might need to be more competitive with pricing or concessions to get their homes sold quickly.
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As we wrap up this month, don't forget to have fun trick-or-treating and soaking in all the fall festivities! For some great ideas on fall activities in Jacksonville, check out this link: Exploring All Things Fall in Jacksonville.
And of course, if you have any real estate questions, big or small, we’re here for you. Our passion is real estate, so feel free to reach out anytime! 🎃
We look forward to working with you and helping you achieve your real estate dreams!
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