Davidson Realty, Inc.

June Real Estate Trends – Pending Sales are Approaching Historical Peak Activity

July 25, 2014

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Posted by in News, Northeast Florida Market Trends

“Sometimes the questions are complicated and the answers are simple.” ― Dr. Seuss

If you are like me, you are drawn to read every article you come across on the subject of the real estate market. Most of these articles generate more questions than answers due to the inconsistency in their conclusions. For example, in the last week I have read (reliable sources!) that new home sales are up to the highest level in 6 years and the real estate recovery is sputtering. Much of the reported news reflects the market where the reporter resides. Additionally, while the national trends are important as an overall indicator, it is our own local trends that are critical to the planning process.

For the first time in my letter I have included below graphs. They represent the Northeast Florida Association of Realtors “Historical Pending Sales Activity” and the “Historical Closed Sales Activity” from 2003-2014. I have overlapped each graph with a trend line to emphasize our market experience absent monthly fluctuations.

 

Going back to those “complicated questions and simple answers”: What are the trends telling us about the market?

Looking at the “Historical Pending Sales Activity” graph, we see that pending sales of 2,321 for June, 2014 are very close to the pending sales in June, 2005. We know 2005 was the peak of the market-U. S. wide. While closed sales numbers for June, 2014 at 2,131 are not quite as dramatic as those in June, 2005; they are approaching the recent peak activity.

I would also like to point out that rate of climb to the peak of 2005 was more accelerated than what has occurred since the deep trough of 2008. I personally believe that is good for the market. A slower, more stable growth gives the market a stronger foundation from which to build.

Pricing, both median and average, continues to improve but still has a long way to go to reach the 2005 levels. The real question facing the real estate market and the overall economy is whether these trends will continue; however slow the pace.

We have a great team to assist you with any real estate needs. Feel free to give me a call at (904) 940-5000.

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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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