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: