Housing price bubble chatter has increased this summer, as market observers attempt to predict the next residential real estate shift. There are too
many housing experts looking at California and the west coast. They see that area as the future for the rest of the country. Its not fair or realistic to believe that to be the case with regard to home sales. The median price for a starter home in California is over $500,000. In Jacksonville, FL that same starter home is only $230,000. The cost of living in Florida is a lot less than California, so much like the housing expert egos, California seems inflated. The July 2018 Home Sales Report will show you the local real estate data to Riverside Avondale Ortega Jacksonville FL.
July 2018 Home Sales Report
It is too early to predict a change from higher prices and lower inventory but the common markers that caused the last housing cool down are present. Wages are up but not at the same pace as home prices. This is leading to the kind of affordability concerns that can cause fewer sales at lower prices. This is a problem nationwide as companies take the tax cut money and buy stock instead of giving it to the employees. Home demand is still outpacing what is available for sale in many markets. New Listings in the Northeast Florida region increased 17.5 percent to 3,807. Something interesting we have seen from other July 2018 home sales reports is that many Baby Boomers are looking to sell before the top of the market. Pending Sales were up 4.5 percent to 2,808. Inventory levels fell 0.7 percent to 9,088 units.
Prices continue to rise in July 2018
Prices continued to gain traction. The Median Sales Price increased 7.0 percent to $230,000. Days on Market was down 9.0 percent to 61 days. Sellers were encouraged as Months Supply of Inventory was down 2.6 percent to 3.7 months. Consumer spending on home goods and renovations are up. The CEO of Home Depot stated that they see continued growth and raised their forecasts for 2018. Unemployment is below the national level as more people are entering the workforce. Employed people spending money is good for the housing market.
GDP Growth Strongest since 2014
Meanwhile, GDP growth was 4.1% in the second quarter, the strongest showing since 2014. Although housing starts are down it is more reflective of low supply than anything else. The July 2018 Home Sales Report shows a growing economy, solid lending practices and the potential for improved inventory from new listing and building activity. But the market balance in Jacksonville FL is more likely than a bubble. Are you a nosy neighbor? Would you like to know the value of your home? Or how about your neighbors house?