The real estate market in Northeast Florida is thriving. Record low interest rates are motivating buyers while limited homes available for sale and price appreciation are providing sellers with a unique opportunity to maximize their homes’ value and earn more profit. During the month of August, 26 percent of homes in Northeast Florida sold over list price.
“In my nearly 20 years in the business, I have never seen a market like the one we have been experiencing since June,” said Berkshire Hathaway HomeServices Florida Network Realty President and CEO Christy Budnick. “We are experiencing a fast-paced market with multiple offers on homes for sale in all price categories.”
Realtor Zack Williams received seven offers on his Montclair Drive listing, which went under contract in three days and sold for $5,000 over the $365,000 listing price. There were eight offers for Realtor Sarah Rothstein’s listing on Invermere Boulevard, priced at $189,000. Realtor Julia Fattahi also received multiple offers for her listing on Woodmere Drive in Jacksonville, which sold for $600,000 after only four days on the market.
For prospective buyers, historically low interest rates are providing more buying power. For every one percent increase in interest rates, a buyer’s purchasing power declines 10 percent. In this market, rates are down 1 to 1 1/2 percent over last year, increasing buying power by 10 to 15 percent.
For sellers, the current market with its limited stock of homes is beneficial. Inventory of homes available for sale is down 35 percent over this time last year, which is driving price increases. Most sellers, if their home is well priced, in good condition and in a good location, will make between five to 15 percent more on the sale of their home than they would have at the beginning of this year. In Northeast Florida, the average sales price increased by 10.2 percent over this time last year.
While it’s sellers who have the market advantage right now, there are opportunities for buyers to benefit. Buyers are encouraged to get pre-approved for a loan before house hunting, making it possible to present a clean offer than can compete with cash offers in this competitive market.
“Obtaining a mortgage preliminary approval as early as possible is a great place to begin when buying a home,” said Eric Spottswood, regional market manager for Prosperity Home Mortgage. “At Prosperity, we want to help you find the best program for your home purchase while delivering an extraordinary customer experience.”
Prosperity’s Buyer Advantage program is no cost and no obligation for buyers and ideal for this real estate market. By electing to participate, a prospective buyer can get much of the home financing process out of the way and obtain a Commitment Letter before they begin searching for a home. Having a Commitment Letter gives clients an advantage in competitive bid situations and also makes the lending process faster and more stress-free for all involved. For more information on Prosperity Home Mortgage, visit PHMLoans.com.
The market forecast indicates this strong sellers’ market will not last forever. Experts anticipate the market will settle down to a more normal pace by the end of the first quarter of 2021. Prospective sellers are encouraged to act quickly if they are considering selling their home. Connect with a Realtor who can assess your home’s true market value and offer guidance to bring it to market. To learn more, visit FloridaNetworkRealty.com.