Latest data published by the New Smyrna Beach Board of Realtors shows existing property sales surging in August 2020. The report describes member activity in the MLS for southeast Volusia County across all inventory.
Overall, Volusia County remains in a seller’s market.
Inventory has declined and prices are increasing while leveling out. Home price increases can be attributed to true home appreciation being driven by low mortgage interest rates inducing greater demand. When rates go down, prices are getting bid upward.
Market activity is heating up!
Volusia closed single family home sales are up 58 percent compared to August 2019. Condo and townhome closed sales are also up, at 39 percent, compared to this time last year. Each of these reports is a big improvement compared to last month, July 2020, where all inventory closings were reporting declines.
Dollar volume, the sum of all sales prices during the month, across single family home sales shows a 76 percent increase compared to August 2019. The increase in single family home volume shows upper priced tiers leading the way. Sales of single family homes of a million dollars or more were up 200 percent year-over-year! While sales in the 600 thousand or more were up 44 percent. All other price brackets show similar improvements, with none reporting a decline.
The market for condos and townhomes, which was hit across the state in the initial stages of the pandemic, has improved in Volusia. Closed sales were up 39 percent with the lower level tiers ($200,000 – $250,000) leading the way, improving 400 percent compared to this time last year. Upper tier class properties of 600 thousand to million dollar range show an increase in sales up 60 percent year-over-year. Only sales in the mid-tier 400 thousand to 600 thousand show a decline of roughly 12 percent.
New Pending Sales are on Fire!
New pending sales for each product are on fire, showing a HOT market with all inventory reporting up to 50 percent “under contract” compared to last month. Median sales prices for single family homes remain as an upward trend as reported in July 2020. Condo price points do not show much change compared to this time last year, but are reporting improvement little by little from July to August 2020.
The net decline of single family home inventory compared with July to August 2020 does show the rate of new listing inventory in July as improving, but August reports inventory fell approximately 10 percent. Last year, August showed a five month supply in the county. This year, August reports only three months supply, down 37 percent year over. According to Florida Realtors’ Chief Economist, Brad O’Connor, the whole state is dealing with an inventory shortage that will “not go away overnight.”
O’Connor describes buyers in the market as, “stockholders that have recovered a substantial amount of asset wealth that they lost during the drop earlier this year and are now financially in a good position to reallocate their assets – including into and out of real estate as they see fit.”
According to Bankrate.com, current rates in Florida on the 30-year fixed is 2.96 percent. By contrast, the rate averaged 3.55 percent a year ago. The average rate on the 15-year fixed-rate mortgage fell to 2.47 percent from 2.50 percent from the previous week.
To receive a copy of the report, connect with a local Realtor.