The question I most frequently hear from friends and customers is, “How is the real estate market?” I am happy to say that 2018 continues to be a terrific year from both national and local perspectives. In this article, I’ll provide concrete evidence from the Northeast Florida Association of Realtors and the Northeast Florida Multiple Listing Service to support that statement.
On the national scene, several factors are affecting real estate sales and valuations. Interest rates for 30-year mortgages are low from a historical perspective (currently below 5 percent). In addition, unemployment is very low, and the economic outlook remains favorable.
In the greater Jacksonville area, the Northeast Florida Association of Realtors (NEFAR) reports similarly positive trends. Pending sales are up over last year, days on the market are down 13 percent, and average sale prices are up almost 10 percent. Overall inventory of available homes remains flat, even though more homes are being listed than last year. As home prices continue to rise, affordability is becoming more of an issue.
What’s happening in Ponte Vedra Beach? In the 32082 zip code area, we also have some highly favorable trends.
· The average sales price for all homes in 32082 in July was $616,127, up 6.3 percent year-over-year and the highest since 2010.
· Pending sales are up 14.3 percent when compared to last year.
· The number of closed sales is up 12 percent when compared to last year.
· For home sales in the luxury market (over $789,000), the average sale price was up 6.1 percent to $1,415,064.
· Days on the market remains low for 32082, averaging 63 days from listing to contract.
Additionally, inventory remains low, and taken as a whole, prices per square foot are up, with the exception of the very high-end luxury market. So overall, our local picture is highly positive. Based on this year’s market trends, if you’re wondering if your home’s value has appreciated, you have a lot to feel good about!
From my perspective as a Realtor, there are a few notable changes in our local market. New construction has become a big competitor to resale homes in Ponte Vedra Beach. Nocatee, in particular, appeals to buyers across all price ranges and has recently started pulling buyers away from the high-end, luxury market. Nocatee’s new custom-built homes are starting to compete with the mature, gated, golf and country club communities.
Our team works with more buyers who are looking for new or updated homes and want a move-in ready situation. These buyers are not interested in a “project” and are less excited than in prior years in allowances for carpets, painting, appliances, etc. Those buyers who are willing to consider a home needing renovations expect deep discounts on the sale price.
I should also mention there are many fewer bargains than in previous years. Distressed sales have been dropping for the last six years and although there are always a few distressed properties, lender-mediated sales are at historically low levels.
As always, real estate prices and valuations are heavily dependent on location. If you are looking for a detailed assessment regarding your home’s value, I highly recommend a home valuation report.