By Betsie Huben
September 29, 2020
Housing of all types continues to lead the Covid-weary US economic recovery in 2020. As reported by the National Association of Home Builders this past month, single-family housing starts increased 4.1% to a 1.02 million annual rate, and single-family permits increased 6% to a 1.04 million unit rate, meaning newly constructed homes are on the rise! This news is confirmed by Joel Kahn, VP at Mortgage Bankers Association, who is reports that applications for new homes “exceeded expectations” for August with a 33.3% increase. Along with this news, Lawrence Yun, the chief economist at National Association of Realtors says housing market activity is “now outperforming” 2019. He adds there will eventually be a vaccine which will continue to boost our economy. He feels optimistic that US home sales will rise 8% in 2021.
Here in Nassau County, Florida our most recent statistical data was published this week showing single family home sales were up 28.3% year over year in August. The average sale price for a home in Nassau County continues to climb and is now 7.7% higher than August of 2019. The median number of days for a house to go “pending” has dropped by 40%! Last year homes went pending in an average of 44 days. This year they go pending in an average 26 days! It is a true “seller’s market” now with inventory down 40% as well at only 2.6 months of supply. There are no homes in the $50K to $99K price point as I write this and inventory is down in all other price points 26% to 46% compared to last year for all but the $150K to $199K price range.
I would be remiss if I did not take a moment out to report on trends for condominiums as well. The condo market is almost as brisk as single family homes. Sales are up by 15% with a staggering 150% increase in cash buyers for condos compared to 2019. The condo market is closers to a more even buyer/seller market here at 3.3 months of inventory. And prices are up almost 16% year over year as well. Condos are taking a slight bit longer to go pending at an average of 42 days which is actually up from 2019. The average sale price for a condo in our market was $487K which is up 6.1% from last August. Many price points have zero inventory but there is a fair amount to be had with 11 active listings in $400K to $599K price range.
We remain very blessed to live in an area where the market is so strong!