By Gwinn Volen
We are six months into 2021. Unless you just don’t pay attention to the news, the real estate market in Northeast Florida and across the US is on fire. Buyers and buying agents are exhausted, and here is why.
Inventory remains impossibly low in all beach areas. If we look at the last six months compared to 2020, housing supply is down 44-77% depending on which beach community you analyze. Nocatee has the lowest inventory levels and is down a whopping 77% from last year, while Neptune Beach is down 44%.
Economics 101 Applies to Real Estate
With that decreasing supply and continued high demand equals, we have, you guessed it, increasing competition and rising prices.
In looking at the median home sale price over the last six months, prices are up 20-30% compared to last year, with Ponte Vedra Beach sale prices leading the way. The median home sale price in Ponte Vedra Beach over the last six months is $690,000.
When appropriately priced, we are seeing homes sell for full price and often over asking.
The Latest Data on Over-Asking Offers
Here are some interesting data points* to ponder for the Beaches/Nocatee real estate market:
- 30% of all beach sales in the last six months closed over-asking:
- 5% in Jacksonville Beach
- 27% in Ponte Vedra beach
- 28% in Neptune Beach
- 32% in Atlantic Beach
- 39% in Nocatee (new construction excluded). 44% of over-asking offers were all cash transactions.
- 35% of all beach sales in the last six months closed at asking price.
- The highest over-asking sale was a condominium in the Fountains in Ponte Vedra Beach. It sold for 25% over asking. Here are the photos.
- The highest priced sale with an over-asking offer was an oceanfront property. It sold in May 2021 for 13% over asking at $3,600,000 after having just traded in August 2020 for $2,566,935 (a 40% increase in 9 months)! Here are the photos.
*Numbers are for the following zip codes: 32233, 32266, 32250, 32082 and 32081. New construction excluded.
Important Takeaways for Sellers in This Market
- With an average Days on the Market at the beach of 14 days, your home is overpriced if you don’t have an offer within 14 days. Uber-luxury properties excluded.
- If you aren’t receiving offers at asking price, you are overpriced in this market.
Important Takeaways for Buyers in This Market
- Be a student of the market. Know what comparable homes are going for. You need the latest data as the market is moving quickly.
- Have your financing in order. All cash speaks volumes but if you can’t go all cash, have your loan pre-approval letters ready.
- Keep contingencies to a minimum. I do not normally recommend this but to be competitive in this market, you need to be flexible.
- Move fast. Be decisive. If you see a new listing and love it, press go and do not look back. Assess what it is worth to you by understanding at what price you are willing to let the property go.
- This should go without saying, but please use a strong agent with experience. Knowledge and experience matter a great deal in a fast moving market. I, of course, recommend using The Volen Group ;-), but there are other great agents out there.
- May Real Estate Report: Is the Beach Real Estate Market Softening?
- April Real Estate Market: Are Over-Asking Offers The New Norm?
- March Real Estate Report: Luxury Market Surges
About the Author
Gwinn Volen is a real estate professional in Ponte Vedra Beach, Florida. She and her small team handle sales from I-95 East, with a particular strength in beach communities. Her team is the #1 producing team at the Beaches in sales volume with a YTD sales volume of $72M. She lives in Ponte Vedra Beach with her husband, two teenage boys and multiple pets.