June 2018 Market Update

 

People are getting mixed messages about whether the market favors buyers or sellers more, but the truth is that it’s more complicated than that. Let me explain.

Summer is here, and the year is almost half over. Since we’re cruising right along through 2018, a lot of people want to know what is happening in the real estate market. I look at the market every day, so I’ve made some notes of my observations that I’d like to share with you.

Does the market favor buyers or sellers? People are getting conflicting information about this topic, and the truth is that it’s all about supply and demand. The market is very hot in some areas at different price points. Some sellers are getting multiple offers, their homes are spending very few days on the market, and they’re getting more money than they thought they would. Some people, on the other hand, are struggling with stagnating listings, causing them to resort to price adjustments.

In the price range below $500,000 for residential single-family homes in St. Johns County and Duval Country, sellers are ruling because of the low inventory, which is 3.6 months’ worth in that price range.

Now take the exact same area at a different price point: Homes in the higher price point between $500,000 and $1 million are taking up to six months and several price adjustments to sell, and there are 6.8 months’ worth of homes available. In the price point above $1 million, we have 13.6 months of inventory.

Keep in mind that homes in all price points are selling very well, but those under $500,000 are selling like hotcakes with the lack of inventory. If you’re looking for homes in any of these price points, you have advantages and disadvantages to deal with. You’ll need an experienced agent to help you navigate the market—what your competition looks like, how many months the home has been on the market, whether the price is fair, and so on.

I happen to be such an agent, so If you’re entering the market soon, please reach out to me. We will have a straightforward conversation about the market that you can use to your advantage when moving forward with your transaction.

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