Current Real Estate Market Trends in Ponte Vedra Beach
The Effect of Covid 19 On The Local Real Estate Market
The 2020 New Year began with a great outlook for the real estate market, especially in Ponte Vedra Beach. Inventory was low and home prices were steadily rising. In addition, mortgage rates were down and the economy was steaming ahead.
Suddenly things took an unpredictable turn as the state of Florida was placed under stay at home orders with many businesses forced to shut their doors and St. Johns County students having to transition to distance learning due to the Covid19 outbreak.
So how does this impact the current local real estate market? While there are still looming questions to the overall effect, what we do know is:
*Home sales were up over 25% through March as compared to last year.
*New listings were up an additional 24% through May
*Homes listed at 1 million dollars and over have seen an increase of 48% compared to May this time in 2019 according to North East Florida Association of Realtors.
Although the data leads to feelings of optimism regarding market trends, it is wise to move forward with care because of the ongoing surge in Florida regarding the Corona virus. It is important to take into account that impacts from the virus did not occur for most of North East Florida until middle of March. There are indicators in the data that from April through the summer months there is less pending listings which dictates future home sales. The low inventory of new listings definitely can be attributed to sellers deciding not to list or remove there homes from the market because of the looming uncertainty of the virus surging in the state. In addition, mortgage rates and requirements became stricter in April with a few large banking institutions deciding to temporarily cease issuing mortgages for loans over $510k, called jumbo loans, causing luxury home buyers to delay a new home purchase.
Although the uncertainty of the virus has impacted the economy and unemployment rates over the last few months, real estate closings are still moving ahead. This past week in July, home resale inventories increased another 1% from June 2020. Single family homes sold on average for $967,500 and 32082 inventory remains low with 7% re-listing and the average price per square foot at $269. We have seen other states like New York, go through high infection rates and then recover to begin to open and resume normal operations with precautions in place. Using that a barometer, our situation here in Ponte Vedra Beach looks promising for the market to return to normal in the near future.
Article data information from Northeast Fl Realtor Association and Ponte Vedra Recorder 2020