Welcome to our monthly market update! As we dive into the heat of summer, the real estate market continues to show its resilience. Whether you're buying, selling, or simply keeping an eye on market trends, understanding the current dynamics can give you the edge you need. This month, we’ll explore key factors shaping the market, from interest rate projections to active listings and pricing power. Our insights will help you navigate these changes with confidence.
June brought some interesting changes in the real estate market. Most home sales (59%) were in the $200k to $500k range, which is a bit lower than the previous month. However, sales of homes over $1 million increased to 194 from 174, showing that high-end properties are still in demand.
Cash sales, where buyers pay the full amount upfront without a mortgage, made up 24% of all sales, a slight decrease from 25%.
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Demand Dynamics and Sales Projection:
Active listings have decreased to 8,776 as of July 13th, down 672 properties (7%) from the previous month. Although there are only 702 more listings compared to last month, the market shows relative strength. Sellers are holding out, and while transactions may slow, significant price declines are unlikely. It's typical for prices to peak in June, so a slight decline in the coming months is expected and should not be alarming.
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The Federal Reserve is expected to keep interest rates steady this month, with a 93% probability. Looking ahead, there's an 88% chance of a 0.25% rate cut in September, up from a previous 53% chance. This potential rate cut could stimulate buyer activity as borrowing costs decrease.
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Now, let's delve into some fascinating details about homes sold in June:
Pricing Power:
Active vs. New List Prices continues to show relative strength in the market compared to historical values. This indicates that prices are holding steady despite seasonal fluctuations. As we progress through the year, prices are anticipated to fall slightly, consistent with the seasonal trend of peaking in June.
One notable change is the increase in seller concessions. These are perks or discounts that sellers offer to buyers to help close the deal. About 38% of sales included these concessions, up from 29%. For new construction homes, the average concession was $15.8k, slightly down from $16.9k. For existing homes, it was $8.1k, up from $7.2k. New construction remained a steady 25% of all sales.
On average, homes sold for 95% of their original list price, which is just a bit lower than last month. This means that while sellers might be accepting slightly lower offers, they are still getting close to their asking price.
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June Sales Snapshot:
Sales Distribution: 59% of sales were between $200k and $500k, a slight decrease from 61%. There were 194 sales over $1M, up from 174.
Cash Sales: Cash sales accounted for 24% of transactions, down from 25%.
Sale Price to Original List Price: Properties sold for 95% of their original list price, a slight decrease from 96%.
Seller Concessions: 38% of properties included seller concessions, up from 29%. The average seller concession was $9.8k.
For new construction, the average concession was $15.8k, slightly down from $16.9k.
For existing homes, the average concession was $8.1k, up from $7.2k.
New Construction Sales: New construction made up 25% of all sales, consistent with previous months.
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Now, let's take a closer look at July so far:
Market Snapshot:
We’ve got some exciting news: a whopping 61% of homes are priced between $200,000 and $500,000, up from 56% last month. So, there are even more options in this sweet spot! New construction homes are holding steady, making up 24% of all active listings, just like last month.
However, not all news is shiny and new. About 47% of active listings have been hanging around for a while without selling, which is a bit higher than last month's 45%. But don't worry, there are still plenty of fresh opportunities out there!
The types of properties available haven't changed much, but we’ve seen some shifts in listings by county. Baker County is up by 4%, Clay County by a whopping 15%, Duval County by 10%, Nassau County by 1%, and St. Johns County by 4%.
Right now, there are 4,635 listings that are potentially priced just right for buyers like you.
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As always we are here to support you whether you're considering buying or selling. Our role is to navigate the market landscape seamlessly, leveraging our expertise and commitment to stay informed.
Don't hesitate to reach out if you have any questions or if you're ready to explore the exciting opportunities in today's dynamic market. Together, we can navigate these trends and secure the best outcomes for your real estate endeavors.
We look forward to partnering with you and helping you achieve your real estate goals in 2024!
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