NorthEast Florida Market Update | February 2024
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. 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. 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. 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. 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. 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. 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. 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! Avg Sales Price Closed Listings Avg Days on Market Avg List Price New Listings $460,513 1,454 68 $520,931 3,257 ⇑ ⇓ ⇑ ⇓ ⇑ Data according to RealMLS. Data includes NE Florida residential sales in December 2023. Trends are relative to December 2022. Jax Luxe Group Real Estate Advisors Licensed Real Estate Advisors Lindsy Norse Cell: 904-962-1990 Email: [email protected] Caroline Knight Cell: 904-437-9186 Email: [email protected] Engel & Völkers First Coast 190 A1A N I Suite 1 I Ponte Vedra Beach I FL 32082 [email protected] I jaxluxegroup.evrealestate.com
Are You Ready to Buy a Home?
As February begins, so does the time of the year when prospective home buyers begin looking for an advisor to help them on their buying journey. Buying a home is one of the most important personal and financial decisions that you’ll make in your life, so it is essential that you understand the journey you are about to embark upon. Complex and seemingly contradictory economic headlines have led many potential buyers to approach the market cautiously. While it’s easy to prioritize mortgage rates in your decision-making process, the economy is just one factor, but should not be the sole deciding factor. Your personal finances, life journey, and local market trends should all be taken into account and given their own weight. There are a number of elements that could make this the ideal time for you to buy a home. Engel & Völkers has compiled a list of some of the most important factors to consider. Finances Credit. A high credit score will help you lock in a lower interest rate—which could save you substantially over the lifetime of your loan. Savings. While your down payment should cover 5 - 20% of the listing price, it’s essential to have extra cash—be it in savings or other sources—so you can have a fallback in case of a job loss or need for major repairs. Debt. Lenders considering your mortgage applications will be sure to look at your debt-to-income ratio. As its name implies, this number gives insight into how much of your monthly income is being used to pay off debts. Most lenders look for a ratio lower than 28%. Market Prices vs. Your Budget: While the economy influences both listing prices and your budget, higher market prices do not necessarily mean your dream home is unattainable. The trick is to evaluate the homes available in your preferred market in your desired price range to see if they meet your needs. Investing in Your Future Recently, you’ve probably heard a lot about fluctuating mortgage rates and inflation. While these headlines may make you hesitant to buy a home, there are also more positive aspects to consider in support of your home buying journey. Here are a few: Pending home sales surging: Despite recent turmoil due to high mortgage rates, pending home sales have seen their biggest increase since 2020. Piggybacking off of stabilizing home prices and decreasing mortgage rates, many anticipate that 2024 will be a positive year for homebuyers. Prices are stabilizing: Despite a slowdown in the real estate market, home prices are still stabilizing. Postponing the decision to buy a home in anticipation of price drops may have the opposite effect, leading to a more expensive purchase. A substantial investment: As prices around the world rise, property values also increase—ensuring that real estate remains a stable investment. A home you purchase today could be worth significantly more in the future. Timing Like many others, you’ve probably considered whether today’s environment is conducive to your home buying goals. While mortgage rates and inflation are meaningful considerations, the real question is whether you are ready to buy a home. Life events such as starting a family, relocating for a new job, or even finally having enough savings to enter the real estate market can play a role in your decision to buy a home. Don’t delay in taking the next step in your life. National vs. Local Trends Finally, most headlines focus on national and international housing trends—not those impacting your local market. It’s important to research local housing conditions, specifically mortgage rates, housing inventory, and listing prices. That’s where one of our local experts can assist you in this critical part of the process. Reach out to an Engel & Völkers advisor to get started. Click here to discover markets predicted to have the most home sales in 2024, and why these cities are on the radar. To properly assess your local market, it’s essential to work with an expert real estate advisor like those at Engel & Völkers—who, first and foremost, are your neighbors. Jax Luxe Group has a comprehensive understanding of the trends affecting their markets and are well-equipped to evaluate how the market looks given your personal circumstances.
NorthEast Florida Market Update | January 2024
Let's wrap up 2023 with a roundup of some insightful details about our real estate market. The year is complete, and it ended on a relatively positive note. Mortgage rates continued their decline as closings rebounded, setting the stage for an action-packed start in 2024. Here's what you need to know: Limited Inventory: Inventory remained constrained, falling 5% compared to last month, and active listings were 10% lower than in December of last year. This highlights the shortage of homes for sale in our market. But wait for it—a new crop of listings should hit the market in January. Exciting, right? Strong Market Performance: Home prices finished the year 6% higher than the same time last year! This impressive increase indicates the market's strength, as real estate in Northeast Florida held up under the pressure of rising rates throughout most of the year. Days on Market and Pricing Insights: Days on market crept up, with many homes sitting longer during the holiday season. Also, sellers regained some power due to the uptick in closings and decline in inventory, leaving buyers with fewer choices. Now, let's dive into some fascinating details about homes sold in December: Pricing Power: Did you know that 75% of the sold properties were on the market for less than 2 months? It's crucial! Pricing a property correctly up-front is the key to getting it sold. Homes selling in 60 days got the most Closed Days on Market. 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. Sales Insights: Here's a snapshot of the sales data: - 62% of sales were between $200k - $500k, although it's down from 64%. Keep an eye on this trend! - There were 88 sales over $1M, up from 75! Now that's a significant increase! - Cash sales accounted for 27% of the total, down from 30%. The trend is shifting. - The percentage of properties sold to their Original List and List prices remained the same as last month, at 95% and 97%, respectively. Consistency is key! - The percentage of properties with concessions noted increased to 42% from 37%, with an average seller concession of $10.9k, up from $8.7k. Interesting insights! - Concessions for new construction properties increased to $18.5k, up from $13k, while for existing homes, it decreased to $7k from $7.4k. - New construction made up 34% of sales. The new is shining bright! Even with everything going on, real estate in Northeast Florida is not slowing down. Whether you're ready to buy, sell, or invest, or if you have any questions about the market, I would love to chat and provide you with valuable insights.
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