St Augustine Real Estate Market
Everyone is freaking out over interest rates and think that there is going to be a housing market crash. Instead of listening to all the noise out there, let’s look at what the stats for the last couple of months are showing and what trends are starting to develop.
So what is happening in the St. Johns County, Florida market specifically?
In the month of October we saw 665 single family homes come on the market in St Johns County.
In the previous month we saw 550 new listings. So that was a 21% increase in inventory in just one month.
We saw 442 homes sold compared to 369 in September, so October saw an uptick in activity even with the higher interest rates.
Days on market have on average been about 50 days the last couple of months. We currently have 3 months of inventory which is the highest we have seen all year.
The median sale price has increased 18.5% from a year ago but since July we have seen a slight decrease month over month and are currently at a median price of $550,000 which is where we were back in June. With this leveling off of home prices and higher interest rates, the market is definitely experiencing a deceleration.
The affordability and inventory is still the most significant factor for homebuyers. Even though inventory is up, three months is still very much a sellers market. Remember six months is a balanced market. However, I am seeing more move-in-ready construction homes come on the market. So the inventory is increasing, but the number can be skewed for people looking to be in a more established neighborhood.
If you are looking for a more established community, the majority of these homes are owner occupied. These home owners may not be in a rush to sell if they have to buy another home with the higher mortgage rates since these homeowners may have refinanced when the rates were lower or bought their home at 3%, so they may not be ready to give up that lower monthly payment.
So, Buyers looking to get into a house now may see more options and opportunity with the new construction homes. There are many incentives right now, such as; closing costs and flex cash which can be used towards reducing the price or buying down the rate.
The interest rates have definitely played a factor on the slowdown in the market. The prices have not come down enough for homebuyers who are still being priced out. However, there may be a light at the end of that tunnel because I am seeing more price reductions daily in our local market.
There are still homes that are priced too high in the current market. Many home sellers have not adjusted to the change in the market. The good news is home sellers are becoming more realistic and considering offers below list price.
Currently, homes in St Johns County are selling at about 97% the list price, so we are not seeing the multiple offer competition as we had earlier this year and buyers now have the ability to negotiate price and terms, which is a wonderful thing.
If you are in the market for a home because you need a home then look at the bigger picture. A mortgage will still be better than renting. Rent will never bring you equity. So if you need a home, then you should buy a home.
If you were thinking about downsizing or upsizing but are comfortable with your current payments and you can manage the home you are in, then I wouldn’t rush to buy another home yet as experts expect a rate adjustment in the coming year.
Again, we can never predict what those rates will be as none of us ever expected the rates to hit 7% this year. But if you do not want to take on the risk of selling your current home and taking on a larger monthly payment, then waiting is the better option.
It will be interesting to see if the November stats continue on this trend of more inventory and price leveling, so I will be sure to bring you those numbers next month. In the meantime if you have any questions about you current homes value or the activity in a specific neighborhood. I’m here to help, so reach out any time.
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I appreciate you watching this video, and I will see you on the next one.