HOUSING NEWS: Strong Seller’s Market In Northeast Florida

Depleted housing supply hits low point of 1.7 months (i.e. “not even close to being able to support the demand,”) said NEFAR President.

Real Estate & Development
Single-Family Home & Condo Supply In NE Florida Has Plunged Since Last Year

According to the Northeast Florida Association of Realtors (NEFAR), the latest residential market data through November 2020 showed housing inventory in the region “plummeted to only 5,211 properties, a massive 44.7% drop from a year ago.”

Housing Supply Hits Low of 1.7 Months

As far as housing supply on hand, it’s the equivalent of 1.7 months. Homes sold more quickly this year in northeast Florida — nearly 17% faster than a year ago (in an average of 54 days).

NEFAR noted that “a balanced market is considered to be 5- to 6-months of inventory.

Another explanation of housing inventory levels in the marketplace is offered by the state’s association of real estate professionals, Florida REALTORS®. What is the significance of MSI (Months Supply of Inventory)? “MSI is a useful indicator of market conditions. The benchmark for a balanced market (favoring neither buyer nor seller) is 5.5 months of inventory. Anything higher is traditionally a buyers’ market, and anything lower is a sellers’ market.”

“Northeast Florida’s housing market desperately needs a significant influx of homes for sale. The depleted supply is not even close to being able to support the demand.”  

2020 NEFAR President, Ron Harris

Exacerbating the already dwindling inventory in the northeast Florida region, only 2,657 new listings were added to the market – less than the number of homes sold.

In a pattern that shows no signs of abating, the diminished inventory coupled with solid demand resulted in competitive bidding for available properties, with 19% of properties going for more than the original list price.

The 2,680 homes sold during November 2020 in Northeast Florida was a 13% uptick over November 2019, but a decrease from each of the previous five months, where sales exceeded 3,000.

The median sales price was $262,000, down from $263,000 last month, but nearly 13% (12.9) more than a year ago. Likewise, the $317,602 average sales price was less than October’s $328,450, but was an increase of 17.2% compared to November 2019.

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SOURCE: News release, data from Northeast Florida Association of Realtors (December 10, 2020). Except where otherwise indicated, statistics reflect combined results for single-family residential and condominium properties.

Further Information

Real estate market reports for Northeast Florida are available for review at NEFAR.com.