Each month, the Florida Realtors organization releases a detailed report that lays out the latest real estate statistics from the preceding month and compares the new numbers with those over the last 5 years. At Thomas Group Realty, we use this information to determine how well the Florida real estate market is doing and help our clients decide when seems like the best time to buy or sell their home.
It’s always interesting to see where the market has fluctuated over the past year and how
Florida Real Estate Closings Are Holding Steady
There were just 3 more closings in June 2018 than June 2017, a difference of less than 1%. While this doesn’t exactly show an upward hike, it does show us that the real estate market is holding steady and that both buyers and sellers are looking for one another in Alachua County.
Numbers were slightly down in May 2018, so the consistency we saw in June is promising as we move into the latter half of the year.
Here’s a little more insight into June 2018’s closing summaries:
- The median sale price was up a smidge from $224,625 in June 2017 to $229,825 in 2018 – a positive increase of 2.3%.
- Average time to contract was down from 43 days in 2016 to just 34 days, a 19% reduction that led to homes spending less time on the market and moving faster toward closings.
- The number of homes sold each month has been steadily increasing since January. In June, 362 homes closed while in May, only 343 homes closed. This was a small increase of 5.5%, but a whopping 147.9% increase since January 2018 when only 146 homes were sold!
Things have steadily been increasing, month by month, throughout this year. That’s good news for the local real estate market and for sellers.
A High Demand for Florida Housing
In June 2018, sale prices were slightly up and the average time to contract was down – both of which are great pieces of news for real estate agents and home sellers. However, there are a few more details we should consider:
- New home listings were down from the previous month. In June 2018, only 367 homes were listed for sale whereas in May 2018, nearly 450 homes were listed.
- Active listings, meaning overall home inventory, was down from the previous month by nearly 3%: There were 945 active listings in May 2018 but only 919 in June 2018.
- Active listings had a major slip. Last year, there were nearly 100 more homes on the market – 1,003 active listings – while there were only 919 in June 2018.
These numbers by themselves tell us that there’s a higher demand by buyers for homes than there are sellers who have listed their homes on the market.
Industry Clues about Inventory
June 2018’s “Months Supply of Inventory” was down by 7.5% from the previous year. In 2017, there was 4 months supply but last month, it was down to 3.7 months. Though it may seem small, it’s actually a big change and it favors sellers.
So, what does “months supply of inventory” mean?
This number refers to how many months’ worth of housing inventory is available on the market at any given time. Ultimately, this tells real estate agents how the market is performing and whether buyers or sellers are favored. Typically, a 5.5-month supply of inventory doesn’t favor buyers or sellers. However, a rating above 5.5 months is said to favor buyers while below 5.5 months is said to favor sellers.
The current market has moved further into the sellers’ territory. As the demand for housing in Alachua County is high but the available inventory is low, it’s likely that homeowners who are selling will receive offers closer to their listing prices, see faster contract-to-closing times, and ultimately feel satisfied with the entire process of selling.
If you’ve been considering selling your home but have been on the fence, now is the time. The Federal Reserve recently hiked average interest rates slightly which may be causing hesitation among some buyers; but with inventory rates as low as they are, it’s still a great time to put your home on the market. We expect the remainder of summer to be busy as we move into fall.
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.