Davidson Realty, Inc.

Pros and Cons: New Construction vs. Resale

July 2, 2021

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Posted by in New Home Construction, Northeast Florida Market Trends

Owning a home is likely more difficult now than ever before. With the slim inventory of homes for sale, homes are FLYING off the market. From the rise in home prices to competitive bidding wars, homeowners have to wonder: is it worth just buying new construction?

 

“This question is tough to answer these days. The inventory is slim and prices have gone up on both sides. For most buyers, timeline is the key decision driver when choosing between new construction or an existing home,” shares Davidson Realty agent Shelley Nemethy.

 

 

Pros of Building New Construction 

  • Newness – When buying new construction, you’ll be the first to call this house HOME! Buyers buying new homes enjoy the peace of mind of having a warranty through the builder and fewer renovations.
  • Design – New construction homes also often feature more modern architecture and floorplans. You’ll find more open floor plans, additional bathrooms and spaces that can adapt to the needs of your family. New homes will leave you and your family only to make minor modifications, if any, to feel at home.

 

Cons of Building New Construction

  • Supply Shortages – Due to the Covid pandemic, many industries have experienced limited supply, delays, and labor restrictions. This has trickled down to impact home building as the cost of lumber, metal and other supplies have been affected by the pandemic. In turn, the decreased supply has increased cost which of course is passed along to the homebuyer.
  • Longer Timeline – With a new home build, homebuyers usually have to wait months to get into a new home. With the current shortage of supplies, there is an even greater risk of delays. Some homebuilders limit the number of lots available for sale in an effort to keep on schedule. “If you have time to build, you have more time to save money for closing costs,” shares Davidson Realty agent, Terri Apodaca.

 

Pros of Buying Resale

  • Shorter Timeline – When buying a resale, the closing day is often negotiated in the offer. Typically, new home owners gain possession in one to two months after their offer is accepted.
  • Character – Existing homes generally have more traditional layouts and features that elevate the home. These charming touches provide a unique dimension to an existing home.
  • Location – “Older homes are often in areas more convenient to metro areas and in more established neighborhoods with more development surrounding. Yards are typically more spacious with mature landscaping. Buyers also won’t have to worry about the congestion of construction taking place,” shares Apodaca.

 

Cons of Buying Resale

  • Competitive Market – With so few homes for sale, most homes are receiving multiple offers. Prospective home buyers have to be patient, persistent, and ready to make their best offer quickly to achieve their dream of owning a home.
  • Increasing Home Prices – As a side effect of the low supply and high demand for homes, home prices have skyrocketed making it harder to afford a home that would normally be in reach.
  • Home Improvements – Often buying a resale comes with a few compromises. Upgrades, remodels, and projects could be on your to do list after closing to make your new home the home of your dreams.

 

If you are interested in buying or selling in Northeast Florida, trust the real estate experts at Davidson Realty. Davidson Realty has more than 30 years of experience and has built strong relationships with many of Northeast Florida’s leading home builders. This advantage along with their extensive experience buying and selling resale homes, make them the perfect partners to help you navigate the real estate market. For more information, contact Davidson Realty at (904) 940-5000.

 

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The Real Estate Market: How Long Will This Go On?

June 28, 2021

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Posted by in New Home Construction, News, Northeast Florida Market Trends

The story of the real estate market has kept most real estate professionals and home buyers and sellers on the edge of their seats. With such unprecedented and unpredictable times, the biggest cliffhanger is: How long will the real estate market stay like this? 

 

There is no doubt that the real estate market has remained strong for longer than most predicted. “I believe the housing market could remain strong for a while longer. Currently, there is only a 1.1 months supply of homes available in our area. When a balanced market is between 5 to 6 months of inventory, it is clear that demand is still very strong for homes in Northeast Florida,” shares Sherry Davidson, President of Davidson Realty. Additionally, home builders have been building fewer new construction homes since the Great Recession which equates to 4 to 5.5 million fewer homes built, based on historical averages. 

 

As the market has continued to stay strong, more people are getting more “comfortable” with the current real estate market conditions. “Three different surveys indicate more sellers plan to put their homes on the market. This, coupled with homebuilders increasing the pace of new construction, will help increase the supply of homes for sale,” shares Davidson. “Interest rates may rise slightly which may slow demand. I predict we will see more normality in the real estate market by the end of this year or 2022,” Davidson continues. 

 

Because of the increased demand, home prices have been on the rise! “We have been seeing double-digit price increases during this time in the real estate market,” shares Davidson. The National Association of Realtors Chief Economist, Lawrence Yun, predicts we will see median existing-home sales prices increase more than 7% in 2021. 

 

With the increase in home prices, those who have taken advantage of this seller’s market are finding it difficult to buy a new home. While some secured a home prior to selling, many are seeking rental homes or staying with family to buy some time. “If you want to avoid the multiple offer situation and frantic pace of the market, we may see less craziness as we get more inventory. Regardless, now more than ever before you need a real estate professional to help you navigate the market,” shares Davidson. 

 

This time in the real estate market will likely be a period that will go down in history as a story full of twists and turns. If you or someone you know is interested in buying or selling their home, contact the Northeast Florida real estate experts at Davidson Realty today at (904) 940-5000. 

 

 

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CONGRATULATIONS TO OUR TOP PRODUCERS FOR MAY!

June 15, 2021

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Posted by in News, Top Agents

I know you have seen all the news about how few homes are available and the market being an extreme seller’s market. I just want you to know how hard real estate agents are working right now to find buyers a home and get it under contract or helping sellers through the process of getting their home sold and closed. With that in mind, I want to recognize our Top Producers who have earned every accolade this month.

 

The Top Producer, Top Sales Agent and Top Listing Agent is Mirtha Barzaga. Mirtha had $3 Million in closings and over $2 Million in sales for the month. Her past customers and referrals helped her get listings in this market and give her buyer customers the confidence that they will find a great home.

 

 

 

The Top Producing and Top Sales Team is The Nemethy Group. Shelley and Tim Nemethy had almost $5 Million in sales for the month. The Nemethys have built their business on relationships and referrals which allows them to be a trusted resource for their customers. Even though they are top producers, they take great care of every customer.

 

 

 

Our Jacksonville Beach Team Top Producer and Top Sales Agent is Jennifer Todd. Jennifer knows the beaches but also helps customers from Amelia Island to St. Johns County. Her knowledge of new construction and the area serve her customers well.

 

 

 

If you have questions about your homes value or anything real estate related, please let one of our experienced and knowledgeable agents help.

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Real Estate Market Update

May 20, 2021

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Posted by in News, Northeast Florida Market Trends

“You just can’t beat the person who never gives up.” Babe Ruth

 

If you want to buy a home in today’s market, you should listen to Babe Ruth. Most buyers are having to be persistent and make offers on several homes before they get a home under contract.

 

The Northeast Florida Association of Realtors market stats for April continue to show high demand for homes and limited supply which is causing price increases.

 

There were 3,615 pending sales in April which is up 52% over last April; however last April COVID was a factor in less contracts being written. The year-to-date numbers for pending sales are up 27% so you can see there is increased demand in the four-month period.

 

There were 3,177 closed sales in April which is a 27% increase month-over-month and 20% year-to-date.

 

The median sales price is $284,941 which is up 14% over last month and 12.5% year-to-date. The average sales price is $357,438 which is up 20.5% over last month and 18% year-to-date.

 

The most staggering statistic to me was the percent of properties sold over list price. For the properties that closed in April, 36.9% sold over list price. That is a 142.8% increase over April 2020. The average for the previous 12 months was 13.3% selling over list price.

 

On the supply side, there were 3,991 available homes for sale at the end of April which is down 58% from last April and there are 1.2 months supply of homes for sale. A balanced market is 5 to 6 months.

 

There may be better news coming to help with supply. A survey by Realtor.com indicated more sellers plan to put their homes on the market. Another survey by NerdWallet of 2,127 homeowners shows 1 in 6 (17%) plans on selling their home in the next 18 months. In fact, 45% of those planning to sell say higher asking prices and lower inventory have caused them to sell earlier than initially planned.

 

NAR Chief Economist Lawrence Yun predicts an increase in the 30-year fixed mortgage interest rate to an average of 3.2% in 2021. “As mortgage rates increase, the frenzied multiple-offer situation will become less prevalent by year’s end, as affordability challenges squeeze out some buyers and more inventory reaches the market,” Yun predicts.

 

“With more inventory and some easing in demand, home prices are expected to shift to mid-single-digit appreciation by the fourth quarter and in 2022,” Yun says. He predicts that:

· Median existing-home sales price will increase 7% in 2021

· Existing-home sales will grow by 10% as more homes reach the market

· New home sales will increase by 20%

 

These predictions are great news. In the meantime, if you are interested in buying or selling, please contact a Realtor with knowledge of the market. We would love to help you navigate these interesting times.

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5 Hidden Gem Neighborhoods in Northeast Florida Worth Visiting

May 17, 2021

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Posted by in Community Involvement, Featured Neighborhood, Neighborhoods, Ponte Vedra, Restaurants

No matter where you explore in Northeast Florida you are bound to find beauty and interest. “Northeast Florida is richly diverse and provides residents a wide variety of activities, restaurants, and sites to enjoy and make wonderful memories. Each neighborhood has a unique culture that truly enriches the First Coast,” shares Davidson Realty President, Sherry Davidson. We’re sharing some new, some old, and some neighborhoods you may have forgotten about in Northeast Florida you need to check out! 

 

San Marco

Take a stroll along tree-lined San Marco Square and you’ll see there is no shortage of incredible dining, boutiques, and art galleries. The Mediterranean-influenced neighborhood which is just a few minutes from Downtown Jacksonville is a perfect place to spend an afternoon exploring. A few of our favorite spots to visit in historic San Marco are Grape and Grain Exchange, Aardwolf Brewing Company, Stellers Gallery, and Heyday!

 

Springfield

As the oldest neighborhood in Jacksonville, Springfield offers residents a historic and eclectic experience. Established in 1869, Springfield, located just north of Downtown Jacksonville, was home to the city’s wealthiest residents. Today, the neighborhood is filled with restored mansions, hip restaurants, and locally-owned shops. Springfield also hosts popular festivals including Porchfest. Be sure to make a pit stop at Strings Sports Brewery while touring Springfield. 

 

Riverside/Avondale

Antique meets modern in charming, historic Riverside and Avondale! Home to the world-class Cummer Museum of Art and Gardens, you won’t want to miss the charm and culture that Riverside and Avondale provide. Drive around the area and you’ll see gorgeous million dollar waterfront homes, locally-owned restaurants, and beautiful parks. Memorial Park, Pinegrove Market and Deli, and Kickback’s Gastropub are definitely places to visit in the area. Oh, and for dessert Whit’s Frozen Custard. 

 

Ponte Vedra Beach

If you have visited Ponte Vedra Beach before, you likely only skimmed the surface of what this stunning resort town has to offer. Prior to becoming a prominent luxury town with world-class golf courses, Ponte Vedra was a pristine wilderness home to valuable minerals giving it the nickname “Mineral City.” Discover Northeast Florida’s natural beauty with a hike at the GTM Reserve or play at TPC Sawgrass, one of the most famous golf courses in the world. Head to Ponte Vedra for date night and try LuLu’s Waterfront Grille or 3 Palms Grille.

 

Nocatee

Perhaps one of the newest go-to areas in Northeast Florida is Nocatee. Although this master-planned community hasn’t been around long, it’s definitely worth visiting! Enjoy lunch at Treylor Park (we suggest the Ahi Tuna Flatbread or the Treylor Park Nachos Grande!) or Timoti’s Seafood Shak before heading to Makk Fashions or Really Good Beer Stop. With new businesses popping up all around Nocatee, you’ll likely have more places to try each time you visit. 

 

Although all these neighborhoods have their own unique flair, one thing reigns true whether you call St. Augustine, Jacksonville, The Beaches, or anywhere in between home… Northeast Florida is the PERFECT place to live! 

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