Jacksonville Housing Market Remains Hot

Although closed sales were down 3.1% year-over-year in August, it’s important to acknowledge that we are now comparing 2021 to 2020, which was the hottest real estate sales year ever in Jacksonville’s history.

So, only 3.1% less sales than August last year, is still an incredible number.

Further, the 2020 market did not experience seasonality due to the surge of relocations from the Northeast and West. These relocations were spurred by COVID. As the market begins to adjust back, it may feel like a market shift, but it’s likely more that the market is reverting back to the mean. Inventory has only increased 5.7% over the prior year and more than 40% of properties are selling over the list price. The market remains hyper-competitive for buyers.

In a normal year, the decline in sales due to seasonality is closer to 30-40% from the peak in July through November (with a slowdown starting in August, as school starts), with a bump up in sales in December as everyone rushes to close before the next tax year begins.

The market remains a Seller’s market and although we may feel some seasonality this year, it’s expected that significant supply will not catch up anytime soon to change the market.

With the Federal Reserve printing 40% of the entire money supply since March 2020, it’s time to buy assets at all time record low interest rates and not lose out to inflation long-term. As some speculate, there are no significant indicators of a correction or crash coming soon. The fundamentals are strong.

Key Northeast Florida Association of Realtors (NEFAR) Stats August 2021 vs. 2020*

• New Listings: +5.7%

• Pending Sales: -2.0%

• Closed Sales: -3.1%

• Avg. Sales Price: 14.2%

• Month's Supply Inventory: 1.4 months supply (down 46.2%)

• Days on Market: 31 days

• % of Homes Sold Over List Price: 41.0% record high

Source: Northeast Florida Association of Realtors.