When rates are low, it can seem like the ideal time to refinance your mortgage. After all, who doesn’t like a lower interest rate? There are lots of good reasons to refinance your mortgage, such
November 2020 Housing Market Update For Polk County Florida
Dated: December 4 2020
- Hello, everyone. It is time for your monthly market update. This is for November, 2020 for Polk County, Florida. And basically we're gonna see a lot more of the same in terms of what we've been seeing in the last several months, a very active hot housing market for Polk County, home prices continue to rise. We are seeing homes sell very, very quickly. And so let me just share a couple of the highlights in terms of some of the stats for you. Again for November, 2020. And these stats are for October. Remember we always get the report from the previous month in the next month. But what we have is closed sales actually up over October, 2019, 30%. So 1,230 closed sales in October, 2020 compared to 946 in October, 2019. So when we say it's a hot housing market, we're not talking about just a little bit, that's fully 1/3 just about more sales this past October than last October. Median sales price 238,105 compared to 215, so up almost 11% in terms of the median sales price, average sales price, 253,761 compared to 222,637. So average sales price is up 14% over last October. So again, we are seeing home prices rising pretty significantly year over year. One question that I also get for buyers and this is really helpful for you to know if you are out there home shopping and you wanna know how much to make an offer on. The median percent of original list price, so what percent of list price are homeowners getting for their listings, for October, 2020, it was 100%. So the homes that are nice are flying off the market and with that being the median, that means, you know, there's obviously some homes that maybe need some work and so they're going for less than original list price but that means there's a whole bunch of homes that are going for more than list price. So there's bidding wars again. And I know we just had that, my partner and I put a home up in Lakeland on a Friday about 5:00 p.m by Saturday morning, we already had one offer we were doing an open house that Saturday, socially distanced, of course, we practice safety when we do open houses. We had 24 people come through our open house that Saturday. And by the time Sunday morning rolled around, we had seven offers all, but basically two of which were over asking offers. And ultimately our seller was able to sign a contract for almost 10,000 over asking. And we're now in the inspection period, we're making a couple minor repairs, but our seller is still gonna be well above their asking price when we close on it in the next few weeks. So just goes to show that right now if you're out there thinking you're gonna get a bargain that's really hard to find, you're gonna have to pick out a home that needs some work and potentially a lot of work in order to really get a bargain at this point, homes are going at basically what people are asking for them As far as how long is it taking? So from the moment a home goes on the market until it goes under contract is 18 days. Last October, it took 29 days, so that's a decrease in almost 38%. So again, homes are going off the market a lot faster and we thought last October was still a hot housing market. And then from the time to go on the market to actually closing is 64 days. So just a little over two months and part of that is for most financing, you're talking about a 30 to 45 day closing period and with all the refinances because of the low mortgage rates, a lot of lenders are backlogged a little bit and so it's come out to about two months to close typically. New pending sales are up 14% over last year and, you know, in the past we've talked about part of the reason for the market increase and the home prices increasing is reduced inventory and part of that was because a lot of people chose not to put their homes on the market during the pandemic. Well, we're starting to see that lighten up and more people going ahead and putting their homes on the market to take advantage of the increased prices they can get on their home and to bear that out, new listings for this October were actually up 9% over last October. So we actually have more homes pending and also we have more listings and we have more pending as well during this period. In fact, 1,974 homes pending during this last month compared to 1,456, so that's an increase of 35.6%. So we're seeing more homes go on the market, they're just getting sold very quickly. And finally, the number I'll share is the month's supply of inventory. And again, as I've always mentioned this is an important number because what a balanced market is is six months. We are at 1.8 months compared to three months of inventory last year. So I don't foresee a winter slowing, it may slow down a tiny bit compared to what we've been seeing in the in the spring, summer, really summer and fall. But I don't expect it to be slower than last year. In fact, I think it will be a much hotter housing market throughout this winter into next spring. And then hopefully the vaccine will be available and things will really start to open up again and we will continue to see a good housing market moving forward. Really the only hope for us to really see prices start to slow down a little bit and really to see an easing on the inventory is new home construction. Unfortunately, there is a lot of new home construction in our area, so we're gonna see more and more of that. And if that's something you're interested, my partner and I are well-versed on new home construction we just closed on one new home for a client last week or actually the week before Thanksgiving and then we've got another one in the works that they are building from the ground up. So that one should be ready in February. But we're happy to help you with whatever your needs are. As always remember, if you need help with your real estate either buying or selling a home, contact Home Team Epic for an epic home buying and selling experience. Hope you all had a great Thanksgiving. And I look forward to our next market update. Please follow us on YouTube. Moving to Central Florida with Home Team Epic. You'll see all kinds of videos on there to help you with the home buying and selling process. If there's a video you wanna see or a question you want me to answer, just send me a message. Call me at 863-2802201, text, email. Whatever's easiest for you. Let me know what questions you want me to answer and maybe I'll do it on a video sometime in the near future. Have a great day everybody.