When Florida Realtors publishes their real estate market report, it offers a comprehensive overview of the statistics for the past month and compares the information with the last year. This information provides a useful overview of the health and trends of the market. At Thomas Group Realty, this data helps us inform our clients when the best time is to buy or sell their home.
Florida Real Estate Closings Are Up
Closed sales have increased by 3.6% since November 2017 from 193 to 200. Even a slight increase in closed sales is good news for sellers, this means that homes are still in demand.
While the numbers for closed sales are vital, the below numbers give a clearer picture of what other driving factors influence the sales, such as the median sale price, dollar volume, and time to contract.
Median sale price grew from $225,500 in November 2017 to $231,798 in 2018.
- Dollar volume was up (the total dollar amount sold by Alachua County real estate agents). Last month, the total was $55.5 million, up from $49.6 million in November 2017 – that’s a 12% difference.
- Average time to contract dropped considerably from 62 days in 2017 to just 40 days in 2018, a 35.5% reduction that led to homes being on the market for barely a month before closing.
From the above information, it’s clear that the demand for homes in Florida continues. So if that’s the case, is it a good time to sell?
A High Demand for Florida Housing
With sale prices up and average time to contract down, it’s a good time for home sellers. And the below numbers reflect that more homes are being listed in the past month.
- New home listings rose from 216 in 2017 to 224 listed homes in November 2018.
- Active listings, meaning overall home inventory, was up by 4.9% from 2017. While November 2017 only had 798 active listings, November 2018 increased to 837.
The increase in new and active listings means a combination of things. Homeowners are seeing the benefit of selling their homes now, but the growth in inventory means that homes may stay on the market longer.
Industry Clues about Inventory
November 2018’s “Months Supply of Inventory” matched the previous year’s inventory with a 3.2 months supply. This is a drop from October 2018’s 3.4 months supply of inventory. However, looking at the information from the past year, this pattern is routine for the fall and winter seasons.
The Meaning of “Months Supply of Inventory”
The number of months’ supply of inventory refers to how much housing inventory is on the market at any time. Real estate agents use this number to gauge whether the market favors buyers or sellers. Basically, a 5.5-month supply of inventory is considered the midpoint, not favoring buyers or sellers. When the number tips over 5.5 months, it’s believed to benefit buyers while anything below 5.5 months favors sellers.
With November 2018’s month supply of 3.2, the market continues to benefit sellers. Even with the uptick of new and active listings, the demand for housing in Alachua County remains high because the inventory is so low. Homeowners who choose to sell now are likely to receive faster closing times and offers that are closer to their listing prices.
If you want to sell, now is the time. Judging from past years, we believe that the month supply of inventory will go down more, making the market even more favorable toward sellers.
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.