How does the NEFL Real Estate Market look 5 Yrs After the Crash?
RealEstate.com recently released an intriguing infographic about how much money was lost during the real estate crash (an estimated $9 Trillion) and how much has been regained since then (an estimated $3.2 Trillion in the last nine months). While this number is encouraging on a national level, national numbers rarely showcase a local market.
So, how is Northeast Florida, faring? After all, Florida was one of the worst hit states in the US.
Looking at the statistics from the NEFAR October 2008 study, you can see that in previous history, listings, pending, and closed sales stayed fairly steady, while over the previous few months, they began to create a huge disparity. The inventory of listings greatly outweighed pending and closed sales, creating a buyer's market.
This over abundance of listings, created a drop in list prices, which is clearly evident in the Historical Percent of Original List Price Received at Sale.
In 2006 the Median list price of homes was $203,000, in 2008 it was $182,000 and in August 2012 it is $141,750.
In 2006 the Average sale price of a home was $256,866, in 2008 it was $229,358, and in August 2012 it is $196,224.
In 2006 the Average list to close ration of a home was 97.9%, in 2008 it was 88.1%, and in August 2012 it is 91.6%.
While these statistics look bleak, not all is lost. When you strictly look at year to year results, the data shows very differently.
If you go down the line, you'll notice that every single change is positive. The only negative trajectories are positive indicators, like Number of Listings, Days on Market, Inventory of Homes, and Months of Supply. (Note: While month over month closed sales is down, the YTD number is still positive.)
So, what does this mean to the Northeast Florida (NEFL) housing market?
With the number of new listings steadily declining, while the number of pending sales increasing, it will continue to push the home prices upward. This is why we are seeing a 22% jump on homes sold above list price. If the indicators continue to remain in this trajectory, what it will mean is a shift from buyer's market to seller's market.
Thank you for reading... How does the NEFL Real Estate Market look 5 Yrs After the Crash?
Riding the Trillion-Dollar Real Estate Recovery Roller Coaster.
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