Today I’m here with the craziest market update yet. Our real estate market has seen some high highs and some low lows recently, and I’ll explain what those numbers mean to you.
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Today I’m here with the craziest market update yet. Lately, we’ve seen huge ups and huge downs. What is going on?
First of all, single-family home sales are down 25.2% from last month. Why the sudden drop? The hurricane came through. There were a lot of pending sales and after the hurricane ended, the banks ordered second appraisals to make sure the structures were still there. As a result, a lot of deals that were supposed to close last month ended up closing this month, which is probably why that significant drop happened.
Now, our market was probably set up for a small decline anyway. Last month, sales were down 9.4%, so we will see how that plays out over the next month. The good news is that sales are up 2% year to date. Closing prices are up 0.3% for the month, which is not a huge increase. However, sales prices are up 3% overall and currently, rest at $211,000.
If you look at the new construction market, though, there are a few alarming numbers. New construction prices are up 10% and the resale market was actually down 4.5% last month. That is the first time we’ve seen an actual decline in the resale market. We may see a slight dip in the first quarter of 2017, but it is hard to say what will happen in the real estate market right now thanks to the election results.
You need to work with a real estate expert in this market.
Residential lot sales were down 50.4% compared to October 2015, and they are down 11.3% year to date. The housing market has faced a crazy challenge with inventory, and the new construction market has definitely been impacted. However, the median sales price increased 60.3% year over year and is up 5.6% year to date. Sold to list price ratios are up to 83%. Builders are looking for land to develop, and the shortage of inventory has caused prices to go up.
What do all of these numbers mean for you? Ultimately, you need to find an agent who is an expert in the field. We study this market all day, every day so that we can get you the best deal as a team. We will keep an eye on these trends going forward and we feel very bullish about the market in January.
If you are thinking about buying a home, keep an eye on that inventory jump we usually see after January 1st. Next spring, we may see some weakness in prices, but again, due to the election results, that could change.
If you have any specific questions about our current market, just give me a call or send me an email. I would be happy to help you!
Click below for the detailed report:
