By Gwinn Volen
May real estate statistics are in, and compared to April it’s more of the same for the 32082 zip code, Ponte Vedra Beach. Inventory remains very low at 4.6 months of supply.
The housing market functions under the same rules of supply and demand as any other industry. Six months of supply is considered a balanced market. So, as a whole, the 32082 market remains a seller’s market (varies based on price point).
Home prices are holding, with a slight change from last May of -3%, but overall prices are up 7% for the last 12 months.
Closed sales for May were down 43% from May 2019, while April was down only 32%. May’s decrease in sales are reflective of the lockdown that occurred earlier, in March and April, while April wasn’t quite as bad due to sales already pending in the pipeline pre-lockdown.
We are definitely seeing an uptick in active buyers on the hunt for inventory as the country reopens.
Housing Inventory Is At Historic Lows
Out of Town Buyers Want In
Over the last 4 weeks, we have seen a substantial increase in the number of out of town buyers interested in relocating to the area. No state income taxes, mild weather, good schools, and breathing room are all factors. Several buyers have said they were on a 2-3 year plan to relocate to Florida, but due to COVID-19 they are accelerating their timelines. Many now have flexible work locations or are just feeling the need for a life change.
There’s no real data to look at for this, but our team is quite busy with buyers looking for the right home in all market segments. We’ve noted a particular uptick in the luxury market, which for our area means >$1M. We are hearing the same from other agents as well as appraisers who are booked out for weeks.
What Should Sellers and Buyers Expect?
A lack of inventory means there isn’t a lot of negotiating room for buyers. Additionally, prices could rise as the country opens up and buyers from the Northeast are able to travel here. However, sellers should be cautious of overpricing. Buyers are rarely willing to pay above market. So, if listing a home, it’s important to price within range of comparable sales in the area and take a good look at the condition of your home and its features. A home that sits on the market “grows a beard” as we say in real estate. Typically, those overpriced homes will ultimately net less than a home priced closer to market.
In this article, I’ve used Ponte Vedra Beach real estate numbers as the example, but these dynamics are pretty reflective of most areas in Jacksonville.
We anticipate that summer is going to be our selling season. If you have a reason or desire to sell, now is the time. Here’s a list of how to ready your home for sale. And buyers, inventory is coming. Agents are able to show homes in person and/or can videoconference from listings.
About the Author: Gwinn Volen is owner of The Volen Group of Keller Williams Realty Atlantic Partners. She specializes in beach communities as well as luxury waterfront properties.