Low Inventory Giving Buyers High Anxiety

A competitive market is driving prices upward around the First Coast.

Recently released housing statistics from the Northeast Florida Association of Realtors show an increasingly lopsided market with low inventory, strong demand and, in some instances, prices being bid up over asking. 

With November’s numbers just recently updated, let’s take a look at some key stats…

Inventory

Clearly, demand is strong, but inventory is low. The number of homes listed for sale in the area has been decreasing all year, with a drop of more than 44% over the same time last year.

Price

With demand so strong, and inventory so low, it’s easy to see why the median sale price in the area has crept up nearly 13%.

As demand overwhelms supply, the result is an increase in the number of homes selling above asking price.

Going Local

Of course, real estate truly is hyper-local, and stats can be drastically different the deeper down you drill. Based on some of our own experiences of late, I wanted to see how demand was shaping up for a couple of specific areas.

 Ponte Vedra/Nocatee (St. Johns County)

Taking the high level view here, you can see that the number of new listings are down, and percent properties selling over list price is up. That last number may be somewhat misleading, however, as what new construction homes are listed for (base price) often wind up closing for more. 

With that in mind, I did a little research of my own in the Nocatee area. Specifically, I wanted to know the percent of existing single-family homes, not new construction, that sold for more than original list price. I found that number to be close to 10%…a pretty big number in an area with a good amount of new construction available.

I also looked at the Southside/Mandarin/Bartram region, then drilled down to just the Mandarin area. Over the past 3 months, just over 25% of homes listed for sale sold for more than list price. That’s a pretty big number.

Now, I’ve never been a fan of the oft-heard “now’s a great time to sell” marketing line. I’m a firm believer that real estate is event-driven (unless you’re an investor). And the time to sell is when you’re ready to, or you need to…a job change, retirement, desire to be closer to family. Whatever the reason. But just because the market is hot is no reason to pack up the moving truck and hit the road. After all, you’d be faced with the same challenges as any other buyer…low inventory, rising prices and all the rest.

That said, if you’ve been thinking about selling, and putting it off for some other reasons, well…now may actually be a good time. 

As always, you can check out the latest NE Florida market stats here…and if you’d like to discuss the pros and cons of listing your northeast Florida home, get in touch with us using the form below: