I frequently am asked the question “How is the market?” I can actually tell you that I was asked that question six different times over the past weekend. Most realtors would answer a question like that with a response such as, “The market is great!” Or, “It’s a great time to sell your house.” Or, “Interest rates are still low so now is the time to buy.” Well, I believe in giving you a more detailed answer. An answer that will allow you to really understand what the market is “doing” so you can be better educated when it comes time for you to buy or sell a home.
Every month, the Northeast Florida Association of Realtors, releases monthly indicators that are pertinent to our market. The September 2017 report was just released and one of the main points it continues to drill is that we need more inventory on the market. New listings in Northeast Florida region decreased 20.9% to 2,271 and closed sales decreased 24.8% from last year at this time to 1,835. What we really need is more homes on the market under the $200k price point which is where the largest amount of our population is able to afford.
The good news for sellers is that the averages days on the market is 66. So, if you are planning on selling your house, and are priced under $300k, you better be ready for it to sell quickly. If your house is priced over $300k it may take closer to 90 days to sell and if you are in the $500k+ range it will take around 100-136 days to sell. If you are lucky, you may be of the 11.7% that is selling for over list price. The average sales price in Northeast Florida is $245,004 which is up 7.7% from last year when it was $227,465 and in 2015 the average sales prices was $210,234.
Have you ever heard of the “Housing Affordability Index?” You have probably heard of it, but like many, have no idea what it means. Like it sounds, the index measures housing affordability for the region. For example, “An index of 120 means the median household income was 120% of what is necessary to qualify for the median-priced home under prevailing interest rates.” The important thing to remember is a higher number means greater affordability. In 2015 our housing affordability index was at 190. Then in 2016 it went down 3.7% to 183. Right now, it is sitting at 161 which a 12% change from last year.
Since this quarter, “Shop Local with Closing Deals in Heels,” is working with Saltologie which is in Jacksonville Beach, I wanted to give a little more information on that area.
In September, there have been 49 new listing in Jacksonville Beach which is down 19.7% from last September. There is a total of 178 homes on the market in Jax Beach compared to 212 in 2016 and there were 40 closed sales last month in that region. The median sales price this month is $370k compared to $336k last year at this time and 10% of those homes sold last month sold for over list price.
If you would like more information on the local market or specific details on any other region in Northeastern Florida, I would be more than happy to provide it to you.
Source: Northeast Florida Association of Realtors