The first quarter of 2021 was nothing short of crazy in our local real estate market. Our normal spring selling season went into overdrive as buyer demand skyrocketed and inventory plummeted. We saw many more buyers moving here from out of state, especially the Northeast and California. The continued low mortgage rates added a sense of urgency to buyer demand.
Q1 2021 Northeast Florida Real Estate Quick Facts
Here are some quick facts about Northeast Florida's first quarter:
- New listings in Northeast Florida dropped 10.3% to just over one month of inventory. Many sellers who were planning on putting their home on the market became discouraged at their options for a new home, so they decided to delay listing their existing home.
- While new construction sales are up, so are the costs for building. The huge increase in cost and shortages of building supplies lead to a backlog in the supply chain. Some builders are dramatically limiting the number of contracts for new construction homes so they can keep up with the projects already under construction.
- Pending sales were up 24% this quarter.
- Median sales prices continue to rise and are up 12.7% from last year.
- Days on the market continue to drop, down 30%, to just 49 days between listing and closing.
- Multiple offers are still very common with some homes selling for dramatically higher prices than the original list price.
- New listings were down 21% year over year.
- Average sale prices were significantly higher than last year.
- Inventory dropped dramatically and in Nocatee there was less than a month of inventory available.
What Does the Future Hold?
Where is our market headed? It's hard to tell! According to Realtor.com, high buyer demand and still-lagging supply will keep prices growing, but at a slower pace than 2020 as buyers contend with mortgage rate and price increases that create affordability challenges. Some experts predict a cooling off of the market at the end of 2021 as supply chain issues resolve and sellers become more comfortable listing their homes.
Historically, Northeast Florida has been undervalued when compared to the rest of the state. Now that Jacksonville has been "discovered" it's likely the buyer demand will continue into the foreseeable future.