Low inventory continues to feed hot sellers’ real estate market

Northeast Florida’s 2020 real estate market remains hot with 3,102 homes being sold in September, a 16.6% increase from the 2,660 sales from September 2019, according to the Northeast Florida Association of Realtors. 

The September numbers indicate a slight slowdown from the previous three months of this year, when 3,202 homes were sold in June, 3,678 sold in July, and 3,208 were sold in August. September was the fourth consecutive month where the number of home sales topped 3,000.

According to NEFAR, the biggest change from a year ago and a key indicator driving the sizzling market was a 44.4% plunge in months’ supply of homes. At September’s end, only two months’ worth of inventory was on hand. This equates to an inventory of 5,869 homes throughout the region or 39.3% less than last year when the inventory was 9,665 homes.

“With five-to-six months of inventory being considered a market that is balanced between buyers and sellers, and September closing with only two months of inventory, it is readily apparent that this is still very much a sellers’ market in Northeast Florida,” said 2020 NEFAR President Ron Harris.

The median sales price this September was $255,250, an 8.6% increase over September 2019, but this represented a slight decrease from $260,750 in August and $264,881 in July. As is typical, the average sales price in September 2020 was higher at $319,616, an upward spike of 17.6% from a year ago, a slight improvement over August’s average of $318,398, but slightly below July’s average price of $323,634.

The average amount of time homes spent on the market was 62 days.

While 3,215 new sellers entered the market in September – a 6.1% increase over September 2019 – it was also the lowest number of new listings since April when the number was 3,170. Most likely this was due to COVID concerns.

Breaking down the inventory of 5,869 homes by construction status, there are 4,747 previously owned homes and 1,122 new construction homes, according to NEFAR. 

Dividing the number of homes due to price range, 1,459 homes are priced below $200,000, while 1,556 fall between $200,000 and $299,999; 1,617 are priced between $300,000 and $499,999; 897 are priced between $500,000 and $999,999 and 340 are priced at $1 million or more.

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