Dear Clients and Friends,
You’d have to be in hiding not to know that the Real Estate market is something else right now! But just a quick email of facts to explain:
1. Prices
The median price of an existing home sold in September rose 14.8% compared to a year earlier.
That is a new record in price growth since these numbers started being tracked in 1968. It is also an all-time high when adjusted for inflation.
So what’s behind this surge in prices?
2. Limited supply of homes
The inventory of available homes on the market fell 19.2% annually.
At the end of October, the number of available homes for sale here in Ponte Vedra and the Jacksonville Beaches was between a 1.7 to 2 month supply. For reference, the normal supply is four to five months.
While this imbalance between demand and supply is certainly pushing up prices, there’s another important factor…
2. Record low mortgage rates
The fixed 30-year mortgage rate currently stands at a record-low 2.8%. That’s almost a whole percent lower than it was a year ago, which at the time was the lowest-ever rate. Buyers and investors are eager to take advantage of this situation. Such low rates can take tens of thousands of dollars off the real cost of buying a home; despite the growth in prices, homes can still be affordable. So what does this all mean for you? Well, if you were to sell your home now, you could sell it for top dollar and in record time.
The bottom line is:
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- With Covid-19, we all find ourselves at home more than we ever dreamed of.
- We eat at home.
- We work at home.
- We’ve learned to Zoom or Facetime to spend time with others
EVERYONE NEEDS A HOME!
As for new home builds, the builders are trying to keep up with the demand as well.
The sentiment from new home builders is that they can’t build homes fast enough.
That means we will likely see an increase in the completion of new homes soon.
That’s why I think it’s such a golden moment to sell right now. Prices are high, times-to-sell are short, and buyers are eager.
If you have any questions, about selling in the current market or where will I go? Just give me a call at (904) 910-7607. I am constantly talking to both buyers and sellers here in our market. Many thanks,
Joni Zwick
