Tuesday, May 29, 2012

Market Update

Housing Inventory Down 65.2%

Amelia Island/Nassau County, FL – April 2012 – Home prices.  They're everyones favorite indicator, and the headlines focus almost exclusively on this one metric.  But prices leave much to be desired.  They tell little about the market's balance - whether overly saturated or in a competitive bidding environment.  Historically low mortgage rates, rising rents and strong investor activity have helped nudge certain areas and segments into stable or even seller's market territory.  Prices are already rising in some cases but it's far from universal.  At first glance, April looked pretty good but there's more to it than that.

New Listings were down 18.5% for detached homes and 38.1% for attached properties.  This is a strong reduction in inventory and helped drive the Months Supply of Inventory (inventory divided by average monthly pending sales) down 72% to 9.1 months from 32.5 months for single family homes (detached) in April 2011.  Condos also saw a reduction in turnover of 34.5% to 16.9 months from 25.8 months in April of last year.

Pending Sales increased 96.1% for single family homes and 5.6% for condominium properties.  Actual Closed Sales were down by one unit (-1.9%) but with the large jump in Pending Sales, we will see a corresponding increase in Closed Sales once they actually close.

The Median Sales Price was up 8.2% to $219,990 for detached homes and 5.4% to $195,000 for attached properties.  It's uncertain whether home prices are increasing or that more higher priced properties are selling.  In our opinion, most likely the latter.

It will be interesting to see the next report as we've seen activity skyrocket and inventory continue to shrink.  We all know the theory behind supply and demand and after so many false starts, we believe the market is finally headed back up.

All data from Amelia Island - Nassau County Association of REALTORS MLS

Featured Listing

95216 Mackinas Circle                      
5 Bedrooms, 4 Baths                    

Executive home in Harrison Cove at Summer Beach! Located in a sought-after gated community on the south end of Amelia Island, this home has many "Wow" features. Screened pool and heated spa, French doors leading out to a covered lanai, beautifully landscaped yard, flagstone patio, hardwood floors, California closets, plantation shutters, great floor plan--all on one level except for the bonus room. Short walk to famous Amelia Island beaches; near golf courses and other amenities. Membership to the Golf Club of Amelia Island is available.

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