August Northeast Florida Real Estate: Competitive Market With Robust Prices and Limited Inventory
August marks third consecutive month with sales topping 3,000. Median sales price is $260,000 and average is $318,308. Marked inventory shortage persists.
Jacksonville, Fla. – August 2020 real estate market reports for Northeast Florida are now on NEFAR.com, Market Stats tab. Except where otherwise indicated, statistics reflect combined results for single-family residential and condominium properties.
With closed sales for the month coming in at 3,059, August marks the third consecutive month in which sales topped 3,000 (3,197 in June and 3,661 in July). The August number is up slightly (1.3%) from 3,021 in August 2019. The year-to-date sales are also closely on par with 2019, totaling 21,951 at month end, as opposed to 21,920 last August.
Sales prices are on a upward track, with increases over prior years continuing to be a key factor in the current market. August’s median sales price was $260,000, for an 8% increase over last August. The average sales price was $318,308, for a 10.2% increase over the prior year.
A sharply reduced inventory of homes for sale is another key indicator of today’s real estate market. August ended with only 6,403 homes available for sale, as opposed to 9,874 for sale last August, a plunge of 35.2%.
While five- to six-months homes on hand is considered a balanced market, August closed out with 2.3 months on hand, a 37.8% drop from a year ago.
Exceedingly low interest rates on loans, fueled by actions taken by the Federal Reserve to protect the economy from damage during the COVID-19 pandemic, have spurred more consumers to join the ranks of those searching for a home. Those low interest rates have also prompted many current homeowners to refinance and stay in their home, rather than opting to sell.
The inventory shortage presents a challenge for buyers, who are finding a highly competitive market where offers on homes for sale are happening rapidly, sometimes in a matter of hours, and competitive bids from multiple offers are driving up the prices. During August, 17.6% of all sales brokered by NEFAR members went for more than the original listing price.
Searchers looking for homes at the lower price levels are finding the fewest choices. The number of homes for sale within the 6,403 total in inventory at month-end, broken down by price range, was:
$149,999 or less: 880
$150,000 – $199,999: 689
$200,000 – $299,999: 1,716
$300,000 – $499,999: 1,764
$500,000 – $999,999: 983
$1,000,000 or more: 371
2020 NEFAR President Ron Harris said, “The real estate market continues to be a driver of the economy, even during the pandemic. We can’t predict if the frenzied pace will continue into fall, especially as there are significant factors – including interest rates, a national presidential election, and the trajectory and ramifications of the pandemic itself – that much will depend upon.”
The Northeast Florida Association of Realtors provides professional development, political advocacy, professional standards administration, media relations, and promotional activities and exchange of information among its members. NEFAR serves as the voice for real estate in northeast Florida, serving the public through efforts to protect private property rights and community affairs programs. NEFAR is Northeast Florida’s largest professional association, comprising more than 9,000 members working in multiple facets of the real estate industry, including residential and commercial sales as well as property management. All statistics in NEFAR’s reports are based on data compiled from NEFAR’s wholly owned subsidiary, the Northeast Florida Multiple Listing Service (NEFMLS), doing business as realMLS. NEFAR is headquartered in Jacksonville, with satellite Service Centers in Orange Park, Jacksonville Beach, Palatka, and World Golf Village. * As all Nassau and St. Johns County Realtors are not participants of realMLS, reports provided do not represent the full extent of Realtor sales in those counties.