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I hope you're doing well! As we step into February, I wanted to share some insights about the real estate market to keep you in the loop.
January usually marks the quiet phase for Jacksonville's real estate, and 2024 is following this pattern, with lower prices, listings, and closings. However, mortgage rates have dropped significantly from the high rates in October, bringing relief to buyers. Although there was a slight increase in January, it won't have a big impact on demand. When it comes to January and February, buyers can look forward to getting the best deal, as prices are usually the lowest, and sellers are eager to make a deal after sitting on the market during the holidays.
The supply of homes is still limited, with active listings 11% lower than last year. The slowdown in closings has driven the months of supply higher. However, we can anticipate the months of supply to decrease in the upcoming months as the market heats up.
In January, inventory continued to decline, standing below the same period last year. With December active listings at 7,015 and January at 6,089, there was a refresh in inventory as many homes expired and new listings appeared on the market.
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Demand has been lower than last January, signaling a slow start to the year. We have already seen the market picking up drastically in February. Demand has stabilized around 1,700 pending sales, likely reaching the bottom. At Jax Luxe, we expect February/March closings to increase based on our experience so far this month.
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In January, mortgage rates saw a slight increase from December, reflecting the ongoing long-term upward trend. As we watch the market constantly, it's essential to keep an eye on these changes, as they play a significant role in shaping the real estate landscape. At Jax Luxe, staying on top of these market movements is a pillar in our business. This diligence enables us to provide the best guidance to our clients, helping them navigate the market with confidence. As we anticipate potential Fed rate cuts, we understand the importance of monitoring these changes to keep you informed and positioned for success in your real estate endeavors.
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Now, let's delve into some fascinating details about homes sold in January:
Pricing Power:
Did you know that 57% of the sold properties were on the market for less than 2 months? This noticeable decline in the age of active listings reflects a surge in new listings, underscoring the dynamism of the market. Pricing a property correctly up-front is the key to getting it sold. Pricing the home correctly nets the most on price and with the least concessions. Homes receive less and must provide additional concessions to sell if they sit beyond 30 days.
If pricing isn’t proper, you might miss out on an extra 5-8% on price and an extra $1-$6k in concessions on average, and with the least concessions. It's essential to get it right from the start.
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Sales Insights:
Here's a snapshot of the sales data:
- 63% of sales were between $200k - $500k, up from 62%. Keep an eye on this trend!
- There were 70 sales over $1M, down from 88. Although this shows a decrease, we achieved a record sale of $22,000,000. Now that's a significant achievement!
- Cash sales accounted for 29% of the total, up from 27%. The trend is shifting yet again.
- The percentage of properties sold to their Original List is 94%, down from 95%, showing a slight shift.
- 36% of properties had concessions noted, down from 42%, with an average noted seller concession of $9.1k, down from $10.9k. New construction concessions averaged $14.9k (down from $18.5k), while existing home concessions remained flat at $7k.
- New construction accounted for 26% of sales, down from 34%, indicating shifts in market shares.
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Now, let's take a closer look at the start of February:
Market Snapshot:
In February, 57% of listings fall within the $200k - $500k range, signaling a significant presence in this price bracket. New construction listings represent 25% of the total, showcasing continued interest in newly built properties. Notably, the number of active listings has declined by 395 (5.8%) since the January statistics release, indicating a dynamic shift in available inventory.
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Listing Performance:
51.2% of active listings are classified as stale, reflecting a noticeable drop from 55.4% in the previous month. This decline suggests improved listing activity and faster turnover in the market. An estimated 3,284 listings are potentially priced "right," presenting opportunities for buyers and sellers to engage in favorable transactions. The majority of new listings are less than a month old, indicating a fresh influx of available properties.
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Whether you're considering buying or selling, staying informed about market trends is crucial for making informed decisions. As your dedicated real estate professional, I'm committed to keeping you updated and assisting you in navigating the market with confidence. I look forward to working with you in 2024!
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