April 2021 Housing Market Update For Polk County Florida
Dated: May 11 2021
- Hello, everyone. Chris Loschiavo with Home Team Epic and I Think Realty, here once again for our market update. This is for the month of April, 2021 for Polk County Florida. We're focusing on single family homes as usual. So once again, a lot of the same from last month, the market is crazy. I know my partner and I had two listings go live last week, both are already under contract, they were within 48 hours, could have been 24 had we not wanted to keep it open for a few more offers and showings. So things are very, very busy in the housing market right now, so let's get to the stats. Closed sales for March, 2021. There were 1,408 closed sales this March, that's compared to 1,101 last March. The main reason why that is lower is because of lack of inventory, which we'll get to a little bit later. Median sales price, 250,000, that's up from 217,000. So that's up 15% year over year. Dollar volume, $376.3 million of homes sold in March compared to 252.7 last March. That's about 48, 49% increase. Two things affecting that number: one, is last March we were really just getting into COVID and there was several weeks there where nobody was going out, nobody was home shopping, the housing market literally froze for three weeks to a month. And that started in March, that's when the shutdown really started. And then the other factor that's impacting that increase is the increase in home values to this year. Median percent of original list price. Once again, homeowners are getting 100% of original list price. That's up from 98.1% last year. So again, if sellers are putting a home on the market that is in good condition, move-in ready, they're getting at least what they're asking for. And what that means is there are some homes that are going for less than asking, usually those that need some work, and there also are homes going for more than asking, both of our listings went for over asking last week. Median time to contract, just 11 days compared to 33 days last year. So if you are a seller and you put your home on the market, you can expect to have it go under contract within about 11 days. That is just crazy fast. Normally we'd see anywhere from 30 to 45 days is what we would advise sellers to expect, but 11 days is just crazy. Median time to the sale, 54 days, that's down from 76 days, so that's the actual closing. And again, you have to factor in all those homes that are going under being bought with a mortgage. You need 30 to 45 days to close, some 60, depending on the type of mortgage so that's why that number is higher than the time to sale. New pending sales are up from 1,026 in March, 2020 to 1,460 in March, 2021. That's a 42% increase. But again, a part of that is impacted by last March being very, very slow and almost coming to a stop. New listings this March, 1,396, compared to 1,287. So not a huge difference about 8 1/2 percent. I think some of that again, could be because a lot of people stopped putting their homes on the market last year at this time. We are starting to see an increase in homes going on the market slight, so that should help our inventory shortage a little bit but we in deed got a long ways to go to get to a more balanced market. Pending inventory, 2,068 homes are pending in March compared to 1,465 last March. Again, just another indicator of just how active the housing market is right now in Polk County and really across the country. These numbers are reflected almost everywhere in the country. Active inventory. There are only 932 single family homes available in Polk County this March. That's compared to 2,696 last March. So that's a decrease of 65%. That is really the big driver in terms of why home prices are increasing so much is the demand is so far outstripping the supply. Low mortgage rates are gonna keep that demand high. And as long as that remains the case, supply is gonna struggle to meet that demand. And I always talk about the month's supply of inventory, and looking at six months as your balanced market, neither a buyer's nor a seller's market, anything more than six months inventory is a buyer's market, anything less than six months is a seller's market. Last March we had 2.6 months of inventory, so very much a seller's market, but this March we have 0.8 months of inventory, so less than a month's worth of inventory available this March. And again, that just indicates just how dire the inventory shortage is right now for the amount of people who wanna buy a home. And that is why our home prices are going up as much as they are, like I said, 15%. The best advice I can give for someone trying to navigate this market is you need a professional to help you. If you're looking to buy, you need to know someone that can negotiate, understands what can make an offer a better offer, more likely to be accepted by a seller. If you're a buyer, you also gotta be patient. You're probably not gonna get the first, second, maybe even third house you put an offer in on just because the competition is so fierce right now. You need to be creative in your offers, it's not always just price, it could be that you put more money down, it could be that you waive some contingencies, but there's a number of ways that you can make your offer more creative and more enticing for a seller. If you're a home seller, it's great, you might think you don't need to do a whole lot of marketing, but the key to getting a bidding war on your home is getting more eyes on your home. So you need someone who can market your home well to get you multiple offers, and then you need someone who can help you analyze those offers to determine which are the best offers. Remember, just because something's the highest price, if that offer doesn't close, it does you no good. So you need to be able to understand what makes an offer a strong offer besides just the price to help make sure you can close on that deal. Anyway, if there's anything that Patricia and I with Home Team Epic and I Think Realty can do to help you with any real estate needs you might have, please reach out to us, our contact information is here in the video. Remember we wanna make your home buying and selling experience an epic one. Have a great day.
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