Davidson Realty, Inc.

November Real Estate Trends – 2014 Predictions Show Continued Housing Recovery

December 26, 2013

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Posted by in Northeast Florida Market Trends

Having a place to go – is a home. Having someone to love – is a family. Having both – is a blessing. ~Donna Hedges

This is the time of year when our thoughts turn to home and family. My parents will celebrate their 64th wedding anniversary later this month. I have been very blessed.

The Northeast Florida Association of Realtors market stats for November continue the positive trends we have seen all year. The pending sales were up 15% over last November and 23% year to date.

Closed sales were down 2% from last November but up 23% year to date. The closings were down compared to the same month last year because lender-mediated closings are down 15%, while traditional closings are up 7%. Lender-mediated closings accounted for 36.4% of total closings compared to 41.8% November 2012.

The days a property is on the market is down 26% from 106 days last November to 79 days this year. The median sales price of $154,000 is up 19% over last November’s price of $129,900. The median price is up 16% year to date. The average price of $189,141 is up 7% over November last year and up 9% year to date.

The inventory of homes is down 11% to 9,203 properties available which is a 4.9 months supply of inventory. A 5 to 6 months supply is a balanced market.

While the real estate market has shown great improvement in 2013, one issue holding the market back is jobs. An article in The Times Union called “Big drop in new U. S. households” says that since 1965, the number of households has grown 1.5 percent annually or about 1.3 million households every year. We are only adding about 600,000 to 700,000 households this year. The major factor holding back new household formation is unemployment of the 20 to34 year olds. We will need to watch the household formation numbers as another sign of our recovery.

I will share some predictions about the 2014 housing market from Florida Realtors Chief Economist John Tuccillo. He predicts about a 10% increase in residential sales with home values rising roughly 5% a year. Freddie Mac Vice President and Chief Economist Dr. Frank Nothaft predicts we will see mortgage rates rise to 5 to 5.5% by the end of 2014.

2013 has been a great year! I wish you and your family a Merry Christmas and a very prosperous 2014.

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About the Author
Sherry Davidson
President of Davidson Realty

Since launching Davidson Realty in 1989, Sherry Davidson has built the firm to include nearly 60 agents and exceed $100 million in annual sales. She is known throughout the First Coast as an authority on all things residential real estate, having served on the Board of Directors for Northeast Florida Association of Realtors, Florida Realtors® (a division of the National Association of Realtors), and Builders Care (charitable arm of Northeast Florida Builders Association).

Thanks to Sherry’s leadership, Davidson Realty has been recognized as one of the state’s Best Companies to Work For (Florida Trend Magazine), as well as one of the region's Best Places to Work and 50 Fastest Growing Companies (Jacksonville Business Journal). Get to know Davidson Realty’s talented team of agents by clicking here or call us at (904) 940-5000.

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