By Nikki-Lyn Holm
The Coastal Home Group
Slate Real Estate
Weather can be hard to predict sometimes....so can this real estate market! In addition to all the rain we had this summer, it has been a super sizzlin' summer of sales! Not only am I talking about the weather, but this crazy HOT housing market too.
In this industry a “Hot” market can mean different things to different people. For example: Have you been thinking about selling? (Yes, this is a hot market) If yes, now is the time. This is most definitely what we all refer to as a “Sellers’ Market.”
Do you need or want to purchase a home? (Amazingly low interest rates)
Although it is a sellers’ market in general, the plus side for buyers is taking advantage of these incredibly low interest rates. Consumers are finding that they have gained more buying power, as the mortgage payments typically end up being less than expected, and this tends to surprise people with how much they really can afford.
Looking back to mid-summer in July, our market had less than a month of housing inventory. What IS inventory, you may be wondering? It is the number of homes available for buyers to choose from. Compared to exactly a year ago, where we had almost 3 months worth of Inventory in the North Saint Johns County area. To put this in perspective though, a healthy and balanced market typically has about 6 months’ worth of inventory or homes for sale.
Our current hot market is awesome for sellers, though, not all buyers. You remember High school economics class, right? Low inventory/high demand. This drives up the competition. It also results in multiple offers, bidding wars, and people willing to pay OVER asking in many scenarios.
According to the Northeast Florida Association of Realtors July Market Stats, 59.2% of the listed homes sold for over list price. This is a 314% jump from last year, as in 2020 it was a mere 14.3% that would close over asking price. In June, throughout the northern Saint Johns and Nocatee/Ponte Vedra area 606 homes were sold. In July, in the same area
547 homes were sold.
The two hottest questions that many sellers today are often wondering are:
What is my home worth?
What could MY home sell for?
I would be happy to discuss the difference between these two questions at any time. We have at least two to three more months of Florida heat, but how many more months do we have of a hot market? My thoughts? It’s here to stay for a while.