This is the most popular trend in Northeast Florida for Single-Family, Previously Owned, 1500 to 2500 Sq.Ft. 3 bedroom home from January 2017 through June 31, 2020. Price range from $169,000 to $419,999 and “DOES NOT” reflect the national average!
We see a decline in the homes for sale 1500 Sq. Ft. or less. In the same category of Homes over 2500 Sq. Ft. that are currently declining and does reflects the National average. Fewer new listings, obviously leads to less inventory, which is causing a supply and demand imbalance, as a result clearly covered in my June 22nd blog. Nationally new listings dropped significantly, down 40% and are slowly recovering. The activity of recovery has slowed in recent weeks, and new listings are coming to market much slower and are still down 18% nationally compared to last year.
The significance you ask? When new listings stop coming to market, overall supply and inventory drops. There are fewer available homes for prospective buyers to purchase. More buyers than listings, leverages the sellers opportunities, elevates the market value while buyers wait impatiently for a home to come on the market! Sellers begin to receive an offer the same day. “PREPARE TO BE PATIENT THE FIRST 10 DAYS ON THE MARKET!” This can be tricky and a seasoned Realtor is your best bet in structuring and negotiation offers. If possible try to be patient the first 5 to 10 days, unless obviously an offer you can’t refuse comes along!” “THIS HAPPENS” This possibly could be a gamble for sellers? Maybe and maybe not, history always tends to repeat itself and that 20 year market maybe coming again, and multiple offer opportunities arise, driving values up!.
Nationally, the number of active listings is down 25% as of June 21st. The slope in this decline continues to be heading down.! On the other hand, The National Association of Realtors reported Pending Home Sales Rose 44.3% in May. Pending sales (new contract signings) in May rose in ALL regions compared to April levels: The Northeast 44.4% monthly gain, Florida and many of the Southern states experienced this as well! In my opinion this is just a temporary trend. People want out of the COVID-19 hot spots and now the Regions they are moving to have SPIKED reports of COVID-19. Is this a driving force? The question asked was this a quick response due to potential recovery of COVID-19 cases, and now due to the huge spike, will it continue to decline.
An interesting overview of some of the biggest markets in the U.S, data collected by http://The Real Estate Market Tracker indicates exceptions, that the number of active listings in most markets is down 20-40 percent compared to last year. Demand is strong, and buyers are gobbling up the available inventory. Markets such as Atlanta, Dallas, Seattle, Chicago, Phoenix and others show a strikingly common downward trend. Compared to last year, the number of active listings is plummeting downward
The significance of inventory
As I shared in my article June 22nd. a drop in active listings isn’t necessarily a problem, but it’s a significant disruption to the market dynamics of supply and demand. If the amount of active buyers remains constant and the available inventory drops, home prices will rise.
In many markets — and nationally — the available inventory continues to drop, and it doesn’t appear to have stabilized yet. The supply and demand imbalance, especially in certain markets, is acute. And with the recovery of new listings coming to market slowing and buyer demand remaining strong, it does not appear to be changing anytime soon.