Each month, the release of the comprehensive report by the Florida Realtors heralds the assessment of the preceding month’s real estate statistics with a comparison of the current numbers with those over the last 5 years. For Thomas Group Realty, this information is key to determining the state of the Florida real estate market and how we can help our clients decide on the best time to buy or sell a home.
While market fluctuations are normal, the natural increases and decreases throughout the seasons can mark specific times that are better than others for seeking a new home or selling a current piece of property. Let’s take a look at July 2019.
Florida Real Estate Closings Are Up
One of the best indicators of the real estate market is the number of closed sales in one month as compared to the previous year. For July 2019, closed sales saw a slight increase of 1.2%, going from 327 closings in 2018 to 331 closings this year. Although this is a small increase, the other real estate statistics for July capture the bigger picture.
Let’s take a look at some of the other numbers that are associated with “closed sales.”
- Median sale price increased to $245,000 in July 2019 from $235,500 in 2018—that’s a 4% increase!
- Dollar volume was up (the total dollar amount sold by Alachua County real estate agents). For July 2019, the total dollar volume was $92.4 million, which was a 3.4% increase from the $89.3 million in July 2018.
- Average time to contract was down to 24 days in July 2019 from the 37 days in 2018. This 35.1% reduction led to homes spending less time on the market and moving faster toward closings.
Based on these numbers alone, July proved to be a great month for homeowners who chose to sell because they were likely to receive offers near or above their asking price, and the closing happened quickly.
A High Demand for Florida Housing
The high demand for Florida housing is sure to continue. With the short contract-to-closed times, high sale prices, and high dollar volume, homes do not stay on the market for long, especially as there are more people looking to buy than to sell.
- New home listings were down, going from 323 listed homes in July 2018 to just 312 homes in July 2019.
- Active listings, meaning overall home inventory, was down by 9.5% from 2019. In July 2019, just 859 homes were on the market while there were nearly 950 last year at this time.
These numbers only confirm that there’s a high demand for Florida homes by buyers. With fewer new listings and active listings, home inventory in Alachua County is low, which means that the demand for homes cannot be met fast enough.
Industry Clues about Inventory
July 2019’s “Months Supply of Inventory” was down 10.8%. In 2018, it was 3.7 months but last month it was down to 3.3 months. When it comes to the unit of “months supply of inventory,” the number refers to how many months’ worth of housing inventory is on the market and available for purchase at any given time. Real estate agents use this data to determine how the market is performing and who the market is favoring—either buyers or sellers. A rating above a 5.5-month supply of inventory favors buyers while a rating below 5.5 months favors sellers.
Based on that information, July 2019’s 3.3-month supply of inventory means that the market is favoring sellers. The continued demand for housing in Alachua County with a low inventory means that homeowners who choose to sell now are likely to have a satisfactory experience since homes are likely to have fast closing times and offers close to their listing prices.
To start the process of putting your home on the market, get in contact with our office. Thomas Group is here for you every step of the way. We’ll help you close faster and get the best price for your home.