Last October, our real estate market was on a rollercoaster. Although things have calmed down a little bit, November’s numbers need further examination. I’ll go over everything you need to know about our market today.
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If you recall, our market was on quite the rollercoaster ride back in October. Now, the November numbers are in, so what’s happening with our market?
In November, we saw that both single-family home and condo sales were up 7.2% year over year. Compared to November of 2015, single-family home sales are up 4.9% and condo sales are up 11.1%.
Back in October, we saw a 25.2% decrease in the sale of single-family homes. That’s because Hurricane Matthew pushed a lot of October closings into November, so these numbers are not entirely accurate. The banks wanted new appraisals after the hurricane ended to make sure that the properties they financed were still standing, which delayed closings even further. Before that 7.2% increase in November, we had four straight months of declining sales.
That said, the 12-month rolling average is a little more accurate. Year to date, sales are up 4.8% overall. Single-family homes are up 2.8% while condos are up 8.6%, which is a pretty good increase.
So, what’s happening with home prices? Overall, prices look great. Last month, prices were up 6.6% with an average price of $178,000 for the month of November. The average price for single-family homes went up 4.9% to $219,400, while condos are up 9%, resting at $127,500.
Again, the 12-month rolling average is more accurate. So far this year, prices are up 2.3% for single-family homes and condos. The average price is $176,800. Single-family home prices are up 4.1% year to date for an average of $208,125. Condos are up to $120,00, which is a 3.4% increase.
That is where we are at right now. Remember, 2016 started out with a bang. The market was extremely hot throughout the first and second quarter but started to slow down in the third quarter. As I mentioned earlier, before November we had four straight months of declining sales. I predict that we may see a dip late in the first quarter or early in the second quarter of next year. I hope that doesn’t happen, but it is something to watch out for.
The biggest challenge for our market is the huge shortage of inventory.
Why is the list-to-sales price ratio so high in our market? Inventory is incredibly low and demand is high thanks to historically low interest rates. People are paying higher prices to get your house in this competitive market. That said, if you are selling your home, you still need to be priced right and have an agent with a fantastic marketing plan.
The inventory for single-family homes is down 6.9% year to date, and condos are down 4.5%. Since there are fewer homes available, there are fewer deals being made, which contributes to that four-month decline in sales we saw earlier. Last month, homes priced over $265,000 did see an increase in sales, but again, we need to keep an eye on those numbers. They are not entirely reliable due to the aftermath of Hurricane Matthew.
What does all of this mean for you? We need inventory. If you’re thinking of selling, reach out to me now before inventory spikes in January. You don’t want to come on the market after everyone else does because you will miss out on this great seller’s market.
All of the experts feel very bullish about the 2017 market, so let’s get together now and put a plan in place. Usually, in December, the market slows down, but we are still crushing it. We just had a number of properties go under contract this week.
