What a difference a year makes! The numbers are in, and 2013 proved to be an excellent year for real estate. Multiple Listing statistics reflect an increase of 24% in the number of sold transactions in 2013 as compared with 2012. The total sold volume for 2013 was up 32% and the median sales price was up by 14%. Our Jacksonville housing market has come back to life.
Why the rapid price increases in 2013?
- A shortage of homes for sale – With new construction just starting to come back and sellers postponing putting their homes on the market until prices improved, our inventory of homes dropped from a peak of over 22,000 five years ago to under 8,800.
- Fewer distressed properties – As property values increased, there were fewer short sales and foreclosures. What foreclosures did hit the market were quickly gobbled up by institutional investors.
- Buyer sense of urgency – Buyers now realize that not only are home prices going up, but interest rates are also likely to rise, as the government backs off its stimulus programs.
The net result was a tight inventory that created a competitive bidding market – supply and demand at work. It is interesting to note that this competitive market extended across all price ranges.
Looking ahead towards 2014, we should continue to see a recovery of the housing market, but at a more moderate pace. If you are considering a move, or just have a question about the market, just give me a call at (904) 386-9816, and I’d be glad to help!
Here are two reports:
2013 Annual Report
Temperatures are hot here in Jacksonville, Florida, and so is the real estate market! As you can see in the Market Summary, there is good news on almost every front. A few highlights:
- Year to date Sales up 25% over 2012
- Year to date Pending Listings up 31%
- Absorption Rate (how long it takes to sell a house) down 34%
- Year to date Median Sales Sales Price up 12%
And this one:
- Number of Active Listings down 21%
Welcome to the new seller’s market! Last year I wrote a blog post entitled “Where are all the homes for sale?” At that time, I noted that our inventory in the Northeast Florida Multiple Listing Service had decreased from a high of around 22,000 during the recession in 2008 to 9,784 in June of 2012. The number of homes for sale as of June 30, 2013 is 7,660.
This shrinking home inventory is occurring throughout the country, and may be the biggest real estate story of 2013.
Another interesting statistic is the dramatic increase in the number of sales and pendings in the $250,000 to $1 million price range – up anywhere from 42% to 65% over this time a year ago.
You might ask “What does this mean for me?” Well, if you have been thinking of a move, now might be a good time. Homes are selling quickly! It is also a good time to buy a home. Homes are still reasonable and interest rates are at a 60 year low.
Please give me a call at (904) 386-9816 or send me an email at LizPapenbrock@gmail.com if I can help!
What is the most common home inspection item that can derail a closing?
That’s a great question! And my answer, hands down, is HVAC issues. HVAC refers to your heating, ventilation and air conditioning system. Here in Jacksonville, most of our homes are heated and cooled by heat pumps, consisting of an indoor air handler (located in the garage, an inside closet, or in the attic) and an outside compressor (located on a concrete pad outside the house).
Repairs can be costly, and replacing a system can run between $3,000 and $8,000, or more. Sadly, most of the items I see on a home inspection could have easily been avoided with just little maintenance. Here is the minimum: Change the filter every month and have your unit serviced at least once a year. That’s it!
Heat pumps offer an efficient way of controlling the indoor climate in our homes. Just taking these 2 steps will go a long ways towards keeping your system humming for years.
We are 9 days into the New Year, and there is already much to be excited about!
Real estate is hopping! Throughout the year, market statistics have improved across the board in every category. Lender mediated transactions (short sales) are declining, while the prices of those homes have risen New inventory, days on market, and months supply have all seen decreases. Pending sales, average price, and properties sold have all seen positive gains. Some homes are even receiving multiple offers and selling over list price!
As we begin a new year, I look forward to sharing more Things to Do and, as always, welcome your comments or suggestions. Have a blessed New Year!
The October Year-to-Date Market Summary from our Multiple Listing Service shows what most of us in Jacksonville, Florida and the First Coast area are easily able to see: our listing inventory is down! There are only 8,365 homes for sale. To put this in perspective, at the height of the real estate crash in 2006, we had over 22,000 homes for sale. By 2010, that number had dwindled to around 16,000.
Here is the report:
What is especially interesting is the increase in home sales in the $250,000 to $500,000 price range and in the sale of luxury homes over $1 million.
In summary, if you are considering selling, now may be a good time to put your home on the market. If you are thinking about buying, I would consider looking seriously now while interest rates are still at historic lows and before prices jump up.
For the complete report, personalized statistics in your area, or a list of great homes for sale, please call me at (904) 386-9816 or send me an email using the contact form on this site. I will have the information right out to you!