An Update on Our Market’s Supply and Demand

Supply and demand is an important thing to know if you want to understand your micro-market.

When determining the market value of a property before listing it, I take several factors into consideration, including:

  • Location
  • Upgrades
  • Comparable homes
  • Square footage

Another very important factor is the supply and demand of homes in that property’s price point.

For example, during the month of August in Ponte Vedra Beach, there were 370 active listings and 54 sold listings, which left that area with 6.85 months of inventory. This means that if sales continued at the same rate as they have and no new homes came on the market, it would take 6.85 months to sell off all their remaining inventory.

In Ponte Vedra’s Nocatee community, there were 225 active listings during the month of August, and 84 of those listings sold, which left 2.68 months of inventory.

Whether you’re a buyer or a seller, it’s very important to look at the micro-market in your price point to see what the supply and demand is.

If you have any questions about this topic or your local market or you’re thinking of buying or selling a home soon, please feel free to reach out to me. I’d be happy to help you.

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.

Ponte Vedra Beach sign

The Latest About the Ponte Vedra Beach Housing Market

Ponte Vedra Beach has had an excellent real estate run over the past year. In 2014, 1,966 homes were sold. In 2015, 2,022 homes sold. That means we sold 236 more homes last year compared to the year before.

 

We’re hoping to see inventory go down a little bit. Right now, the current supply of homes rests at six months. That’s a balanced market for buyers and sellers alike. However, there are significantly fewer homes available below $350,000. For homes priced above $700,000, there’s about eight months of inventory. However, these numbers don’t account for condominiums and vacant land; it’s only for single-family homes.

What do these statistics mean for consumers? While our market is healthy and normal, we’re still sensitive to pricing. When sellers price their properties too high, they sit on the market and often fail to sell. The average days on the market for January 2016 was 99 days.

If you’re interested in buying or selling a home in the surrounding Ponte Vedra Beach area, reach out to me by phone or email at your earliest convenience. Let’s get the ball rolling! I’d be happy to answer any real estate questions you might have!