Happy 2015! Since we’ve turned the corner and headed into a new year, we thought you might like a quick market update for our area of Florida. Our market is recovering nicely, given the slow growth in the national economy and the large number of foreclosures that occurred in Florida. Although fewer foreclosures are hitting the market every year, there are still enough of them to slow the rate of price appreciation, especially in the lower price ranges.
Looking at the last six months in Martin County, 1178 single family resale homes were sold at an average price of $348,000. (Bear in mind that 20 homes sold at prices over $1,000,000--so the average price in Martin County is always a little skewed.) They were only on the market an average of 88 days and sellers got an average of 95% of their listed price.
In Port St Lucie, 2243 single family resale homes sold at an average price of $169,864. They were on the market an average of only 64 days and sellers got an average of $102% of their listed prices. This is because of multiple bids on homes in the lower price ranges and because buyers often add closing costs onto the contract price of homes.
Approximately 18-19 single family resale homes are being sold in our market area daily (Hobe Sound, Stuart, Palm City, Jensen Beach, Sewalls Point, Hutchinson Island and Port St Lucie). In addition, there are fifteen planned communities being built here and sales of new homes is very brisk. Builders, in general, are not building spec homes here, so if you want a new home, you probably will have to wait for it to be built. (If you’re interested in a new home, give us a call—we have floor plans, prices and details on the communities. If you want us to represent and advise you, we need to accompany you on your initial visit to the model homes.)
Inventories of existing homes is rather low and we actually have buyers on a waiting list in certain categories. If you know anyone who wants to sell a home (or condo) please give us a call. We probably have a buyer “waiting in the wings.”
Real estate economists are predicting a terrific year nationally with prices expected to go up around 5%. This is very strong appreciation, since the historical norm is only about 3%. Interest rates are expected to rise, but probably not over 5%. This will still be good for homebuyers because the historical norm is about 6%. The current interest rate (under 4%) is an incredible deal for homebuyers! Anyone who is capable of buying a home should not be renting unless they plan to move within the next two years.
Please remember that each of us has over twenty years of local real estate experience and we have sold approximately 1,000 properties in the area so we really know the market. Call us with any real estate questions or needs—we’d love to help.
Gary and Nancy Gregg