Each month, Florida Realtors releases a comprehensive report detailing real estate statistics from the preceding month and compares the current 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.
Florida Real Estate Closings Are Up
From December 2016, closed sales were up 12.3% from 243 to 273. Though “twelve” may seem like a low number, this is a substantial difference.
When you consider the other numbers that fall under “closed sales,” you can see how things really start to add up:
- Median sale price was up from $210,000 in December 2016 to $215,000 in 2017.
- Dollar volume was up (the total dollar amount sold by Alachua County real estate agents). Last month, the total was $64.5 million, up from $58.7 million in December 2016 – that’s a 9.9% difference.
- Average time to contract was down from 63 days in 2016 to just 53 days, a 15.9% reduction that led to homes spending less time on the market and moving faster toward closings.
- In a single month, nearly 100 more homes were sold in December 2017 than in November 2017. In December, 273 homes closed. In November, just 193 homes sold. That’s a massive increase of 41.45%!
From this standpoint alone, we can see that the Florida real estate market is doing well. So how can we determine whether or not it’s a good time to sell?
A High Demand for Florida Housing
While sale prices were up and average contract-to-closed times were down – both of which are great pieces of news for real estate agents and home sellers – the December 2017 numbers tell us another story:
- New home listings were down from 182 listed homes in December 2016 to just 173 homes in December 2017.
- Active listings, meaning overall home inventory, was down by 15% from 2016. Last month, just 722 homes were on the market while there were nearly 850 in December 2016.
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
December 2017’s “Months Supply of Inventory” was down 17.1%. In 2016, it was 3.5 months but last month, it was down to 2.9 months.
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 climate is clearly in the sellers’ favor. 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, the numbers from December 2017 are a clear indicator that the market is in your favor. We expect January’s numbers to be in a similar place as December 2017’s and have high hopes moving into February.
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.