By Gwinn Volen
The Ponte Vedra real estate market is poised to do well in the coming months. Why is that? Let’s look at the data.
To no one’s surprise, April was a slow month in real estate. The “lockdown” kept people indoors.
In 32082, new listings were down 42% vs April of last year. Closed sales were down 32%.
Our typical flood of out-of-town buyers and those looking to make a move were few and far between in April.
Additionally, we did not see the usual spring inventory hit the market as people sheltered in place. Hence, supply is down to 4.3 months of inventory. That is incredibly low. For perspective, months of inventory during the housing crisis was 28 months in 2009.
Just like any industry, real estate sales and pricing are driven by supply and demand. A balanced market is typically 6 to 7 months of inventory. At 4.3 months, we are clearly in a seller’s market. 7+ months of supply represents a buyer’s market.
On the demand side, we are seeing interest rates at historic lows and we have an unprecedented amount of capital being injected into our economy thanks to the U.S. government. Though the long term effects remain to be seen, we are already seeing the short-term impact with buyers who sat on the sidelines during early and mid-April, now back in the market looking to take advantage of the low interest rates.
Another positive signal is that prices held steady. Additionally, % of list price held strong during April at 97%. Again, for comparison, that figure was 89%.
If you are thinking about selling your home, now is the time. The lack of inventory puts you in a good position.
Anecdotally, we are getting a larger number of inquires from buyers from the Northeast in higher density areas. Ponte Vedra has a lot going for it: sunshine, beaches, no state income taxes, great schools, and room to breath.
It’s important to note that each price point is nuanced, with some slower to rebound than others. Please contact me for details on your market or visit our website for a no-obligation consultation and I’ll reach out.