“Northeast Florida’s July real estate activity reflects a trend that we have seen for the bulk of this year: a sizeable volume of sales, diminished inventory, increasing prices and fairly rapid sales. It’s an opportune time for home sellers in Northeast Florida.” –Northeast Florida Association of Realtors, President, Sally Suslak
In June and July North Florida home sales soared, surpassing the 2,500 mark. In June 2,587 homes sold, the highest monthly number of sales on record since NEFAR started tracking stats. Another 2,534 homes changed hands in July. This followed three consecutive months of 2,200+ sales in March, April and May.
But as we move forward, the big question is will the Fed raise interest rates at their September meeting?
A September rate hike seemed very likely before the stock market tanked and regained its footing last week. Now the Fed may be more reluctant to raise rates. They usually don’t like to do so in the middle of global economic turmoil.
Fed Vice Chairman Stanley Fischer indicated that if market volatility eased a rate hike could occur, but other members of the committee suggested raising rates was “too risky” in the current economic environment. Some also admitted that the recent stock sell-off across the globe could have a big impact on the coming interest rate decision.
“It’s too early to tell. We’re still watching how it unfolds,” said Fischer
So keep a close eye on how things unfold over the next few weeks. But even if the Fed waits to increase its benchmark rate, it’s clear that a rate hike is coming soon. And the best time to buy and sale a home is now, before higher mortgage rates eat away at your buying power or slowdown the hot Florida real estate market.
Now let’s take a quick look at the sales data from July 2015.
Pending sales data also indicated that the market would keep trending in a positive direction through August. (The final numbers will be out in a few more days.)
There were 2,661 pending sales in July and over the last 5 months this number has topped the data from the market’s peak in 2005. The 2,661 pending sales represented a 24% jump over numbers from last July. So far this year pending sales have climbed 20% higher year to date than in 2014.
The 2,534 closed home sales referenced above were divided between single-family homes (2,174) and condo/townhomes (360). The number of closed sales exceeded July 2014 numbers by 13.5 percent. For the year, sales are up 12%.
Median sales price
Median sales price rose 9.1 percent from $165,950 last July to $181,000. This was a slight decline from June of 2015, when it stood at $183,590. Compared against 2014’s year-to-date sales data, the median price has risen 9 percent. Average sales price, which hit $224,891, also increased 4% over last July’s numbers and 6% for the year. On average, sellers received 94.3 percent of their listing price.
The lack of housing inventory is one of the drivers of higher prices. Sellers listed 3,373 homes in July, but buyer demand tin spring and summer still diminished inventory below normal levels. When July ended, only 9,722 properties remained, which is 4.4 months of supply. So the market was definitely tipped in the favor of sellers. Over 66 percent of the properties listed for $200,000 or less, while more than 33 percent of the homes were priced at $300,000 or more.
Days on the Market
Homes are also selling 3.7 percent faster than a year ago, as the average days on the market dropped to 78.
Contact Us Today if You’re Buying or Selling Your Home
Without a doubt, the North Florida real estate market is regaining its footing and building momentum. And as I mentioned above, now (while mortgage rates remain low) is the best time to buy or sell. If you’re a seller, inventory is low and demand is high, partly due to the low rates. If you’re a buyer, you can get more for your money while rates are low.
Contact us today and we can have your home on the market or find you your ideal home BEFORE RATES INCREASE. Reach us at 904-509-7584 or send us an email and we’ll get in touch with you.