Hey everyone! With summer break just around the corner, lots of families are getting ready to move to new homes. It's a busy time, and prices tend to go up during the summer months.
More houses are popping up on the market lately, about 8% more than last month. But don't worry, the market is still in pretty good shape with plenty of homes being sold. Right now, there's about 3.58 months' worth of homes available, which means it's fairly balanced between buyers and sellers.
Let's take a look at the market trends to keep you informed and empowered in your real estate journey.
One of the key things to keep an eye on this year is the supply of homes. Back in 2021, homes were selling like hotcakes, but now things are starting to even out. Buyers have more options available to them than they've had in a while.
It's pretty normal for this to happen around this time of year. Right now, there's about 3.5 months' worth of homes available, which is a good balance. We'll be keeping an eye on this number to make sure there aren't too many homes on the market, which could cause prices to drop.
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Demand Dynamics and Sales Projection:
Here's some good news for sellers: it's taking less time to sell a house these days. A few months back, it took around 51 days, but now it's down to just 33 days. That's a big drop of 35%! And if you're a homeowner, you might be happy to hear that prices are still going up. They're about 7% higher than they were this time last year.
The number of closed home sales stayed high at 2,400, showing that there's still a lot of demand for homes in Northeast Florida. With summer coming up and school out for break, more people are expected to keep buying and selling homes.
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But there are some challenges ahead. Interest rates are going up, which might make it harder for some people to buy homes. Plus, there's some uncertainty with the upcoming election. Rates are now back in the 7% range, partly because of concerns about inflation.
Mortgage rates have been creeping up lately, rising by about half a percent since their low point in December. The Federal Reserve, the big organization that oversees money stuff, has cut back on how many times they're planning to lower interest rates. This change has nudged rates up even more.
There's some trouble brewing for the Fed because of inflation, which is when prices for things start going up. It seems like inflation might be making a comeback, even though the economy is slowing down just a bit.
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Now, let's delve into some fascinating details about homes sold in April:
Pricing Power:
Ensuring your home is priced accurately holds increasing importance, particularly when considering recent market trends. Notably, 69% of sold properties were off the market in less than two months, a notable increase from the previous figure of 62%.
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April Sales Snapshot:
· 60% of sales between $200k - $500k (down from 63%)
· 175 sales over $1M (up from 115)
· 26% cash sales (same)
· Sold to Original List = 96% (same)
· 39% of properties had concessions noted (same)
· Average noted seller concession was $9.6k
· New construction concession was $16.9k (up from $16.8k)
· Existing home concession was $7.7k (up from $7.5k)
• New construction was 19% of sales down from 25%)
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Now, let's take a closer look at May so far:
Market Snapshot:
The May Market Stats reveal several notable trends in the real estate landscape. Notably, there's been a slight increase in listings falling within the $200,000 to $500,000 price range, now comprising 56% of all listings, up from the previous 55%. New construction maintains its presence, accounting for 24% of active listings, consistent with previous figures.
One of the most significant observations is the substantial growth in listings priced at $200,000 or higher, with listings priced at $3 million or more experiencing a staggering 287% increase. Additionally, analyzing changes in listings by county sheds light on localized market dynamics, with Duval County seeing a 9% increase, Nassau County experiencing a 4% increase, and St. Johns County observing a 7% increase. These shifts underscore the evolving landscape of the real estate market, reflecting changing inventory compositions and regional variations in supply and demand.
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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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