Home sales in Flagler County saw decent gains in regards to the number of sales over 2016 in both March & April coming in at about +16% & +14% respectively. This was good news especially since home sales during those months were down in 2016 vs 2015. May of this year however is a slightly different story. The area had roughly a 10% drop in the number of sales vs last year according to preliminary numbers. Median price remained strong coming in around $212,750 for May and was roughly 3% above the year before for the same period.
What’s the outlook for the rest of the year?
The market in the area overall is very healthy. A couple of points that indicate that:
- Demand remains strong. Thru May the number of sales overall are up about 1% over the same period last year, and median price up about 9%
- Distressed sales (foreclosures and short sales) are almost non-existent, and those that have sold have moved rather quickly
- Inventory levels remain low, but building can be seen taking place throughout the county
May’s performance, however, does raise some flags in regards to performance for the remainder of the year. May is typically one of the top months for quantity of sales in the area. The drop could indicate a slowing for the remainder of the year.
Price increases are putting pressure on demand, and it’s important to look at the trends. The chart below shows the history of the number of home sales and median for Florida from 1994 thru 2016. As you’ll see there is a tipping point with spikes in price where demand naturally slows. As you can see, demand slowed in 2016 for the first time since median price began recovering around 2011. On a positive note, demand is at is highest level historically!* Statistical data courtesy the Florida Association of Realtors
Be realistic about selling price. As I’ve said before . . . it is often very easy to fall into the trap of times when prices rise quickly to price to high. Speculating over-pricing is almost always a major contributor to a property remaining on the market for a lengthy period of time which can be a costly situation. Builds have increased and inventories still remain low but have increased slightly which means buyers have choice and are being more selective.
Keep in mind that interest rates remain low and low inventories, it means you should be ready to act fast. If you are considering building, get all of the information together to weigh both the purchase of a new build versus an existing home (i.e. time to close, closing costs, etc.). It is a time to be ready and have your finances sured-up as other buyers are also motivated. Waiting could be costly in terms of home price and interest rates if both increase.
Disclaimer: Information based upon the Flagler County Association of Realtors MLS and the Florida Association of Realtors website as of 6/4/2017 for Residential Houses. Information may be deemed reliable, but is not guaranteed.