Reports from May 2020 by the Northeast Florida Association of Realtors (NEFAR) indicate that COVID has effected the larger economy but the real estate market is showing some signs of recovery across much of the country. Mortgage rates has been close to all-time lows, spurring the interest of buyers. Showing activity increased 4% across the U.S. when compared to the same time last year.
In Northeast Florida, new listings decreased by nearly 20%, pending sales decreased by 2%, and inventory levels fell nearly 18%. While these measures decreased, prices continued to gain traction, with an increase of over 6% in median sales price.
The NEFAR report notes that buyers have returned to the market with more speed than sellers. Sellers have been more reluctant to sell their homes during COVID but the number of homes for sale is expected to increase as states continue to moderate their COVID policies.
Specifically, for our Ponte Vedra Beach area, year to date (through May):
Inventory of homes availability is down but varies greatly between our three areas. The month's supply of inventory has drastically decreased across the board in the Ponte Vedra area with Ponte Vedra Beach and Nocatee areas at a 3 month supply. Remember, a “balanced real estate market” has an inventory of 6 months, so these areas are definitely experiencing a “seller's market”.
Our personal experience has been a little like Mr. Toad’s Wild Ride. We started the year very strong and then had a complete lull in activity from mid-March to the beginning of April. The phone started ringing again in April and hasn’t stopped since. We’re seeing many buyers who are moving from big cities and densely populated areas. They’re looking for more space, better weather and good schools for their children. We’re also seeing a big uptick in buyers who have decided they will continue working from home. Florida’s tax structure, good schools, and moderately priced real estate have made our area a destination for people who can work from any location.
If you’re interested in how a specific neighborhood is trending, please give us a call. We’d be happy to pull together a neighborhood market report for you.