Throughout the year, Florida Realtors releases a monthly and quarterly comprehensive report detailing real estate statistics. The current numbers from the previous month are compared with numbers from the last 5 years.
At Thomas Group Realty, this information helps us to determine how well the Florida real estate market is doing. We then can guide our clients in their decision process for the best time to buy or sell their home.
Florida Real Estate Closings Continue Upward Trajectory
While May 2018 had 343 closed sales, May 2019 had 369 closed sales, which was a 7.6% increase since last year. While it’s interesting to see how the numbers decrease or increase month to month, the more helpful indicator of market health is the comparison of previous years.
- The following numbers will also help build the full picture of May 2019 in comparison with the previous year: Median sale price dropped from $241,000 in May 2018 to $239,000 in 2019.
- Dollar volume increased (the total dollar amount sold by Alachua County real estate agents). In May 2018, the total was $93.9 million, but the May 2019 dollar volume increased to $100.8 million–a 7.3% difference.
- Average time to contract was down from 34 days in 2018 to 32 days in 2019.
- In a single month, nearly 70 more homes were sold in May 2019 than in April 2019. May saw 369 homes sold while April sold only 296 homes.
All of these numbers reveal that the Florida real estate market is doing well and is holding steady. Traditionally, spring and summer are some of the best times to sell, and these numbers reflect that trend.
Continued Demand for Florida Housing
The news of increased dollar volume and decreased closing time is great for both real estate agents and home sellers. But let’s take a look at the following numbers to get a more accurate picture of who the real estate market continues to favor.
- New home listings were down from 442 listed homes in May 2018 to just 422 homes in May 2019.
- Active listings, meaning overall home inventory, was down by 7.8% from 2018. While May 2018 boasted 945 homes on the market, May 2019 dropped to 871 homes.
Once again, we are seeing that there’s a higher demand by buyers for homes than for sellers who have listed their homes. This creates a market ideal for someone who wants to quickly sell their home and receive offers near or above their asking price.
Industry Clues about Inventory
A key component to the real estate market is the measurement of the “months supply of inventory.” For May 2018, the months supply of inventory was 3.8 months while May 2019 saw a decrease to 3.3 months.
Basically, the idea behind “months supply of inventory” is that this number highlights how many months’ worth of housing inventory exists in the market at any time. It also works as a measurement for whether buyers or sellers are favored by the market. The rule of thumb is that a 5.5-month supply of inventory doesn’t favor either party while a rating above 5.5 months favors buyers and a rating below 5.5 months favors sellers.
Based on this information, it’s clear that the Florida Real Estate Market in Alachua County is in the sellers’ favor. With continued demand for Alachua County housing and a low available inventory, homeowners who are ready to sell will experience a satisfying selling process with fast closing times and better offers.
If you’re looking to sell, the report from May 2019 shows that the market is undoubtedly in a place to ensure a great selling experience. As the summer progresses, we expect to see more favorable numbers for home sellers.
To start the process of putting your home on the market or to begin your home search, 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.