Our homes have become more important than ever due to stay at home orders and the numbers are a proof of that.
Housing demand is up while supplies remain low and while the main stream media reports on a current crisis and even an economic turmoil, the real estate market paints a completely different picture.
Proof of that are the amount of first time home buyers during the month of August 2020. First time home buyers accounted for 33% of all sales in August and foreclosures and short sales represented less than 1% of sales.
Although many speculate the down fall and crash of the real estate market, sales continues to rise and considering that mortgage interest rates remain historically low, chances are the demand for housing will continue to increase.
Let's take a quick look at the number for August 2020 that supports such claims mentioned above.
Real Estate Market Snapshot for August 2020
In the United State as whole, sales rose up to 10.5% compared to August of 2019. The median sales price increased by 11.4% and 50% percent of the homes were either sold above or below $310,000.
Now, as far as inventory goes, the number continues to decline, down by 18.6% compared to a year ago, with only 3.0 months supply of inventory.
Days on the market for the country averaged at 22 days.
Florida Real Estate Market August 2020
Considering many residents from big cities such as California, New York and Chicago are wanting to relocate to places that are more affordable and can provide a better life style, Florida has become one of the states that these residents are choosing to become their primary residence.
Year over year, sales have increased by 8.8% for single family homes and 10.3% for condos and townhouses.
Median sales prices also saw a jump of 13.2%, increasing the median price of single family homes to $300,000 and 14.5% at $217,500 for condo and townhouses.
Now the average price, which represents the average price homes are being sold for has also increased drastically. Compared to August of 2019, average price rose up by 22.3% at $414,446 for single family homes and for condo and townhouses that number is 14.6% increase, putting the average price at $305,675.
The days on the market in Florida for single family homes was about 29 days and 45 days for condo and townhouses.
Inventory experienced a great decrease for single family homes, down by 35.5% compared to last year, with only 2.3 months supply of inventory while condo and townhomes experienced a smaller decrease of 5.6% with 5.3 months supply of inventory.
Lee county real estate market august 2020
Lee county has been experience a great growth in the population. The county has seen a surge of new residents and because of that the real estate market for the area is soaring.
Single family homes saw an increase of 16.5% in sales while condos and townhouses increased 28 % year over year.
Median sales price rose by 16.5% and is now at $297,188 for single family homes and 13.9% at $205,000 for condo and townhouses.
As expected, average sales price also saw a jump compared to last year. Single family homes average sales prices are now at $395,107, a 24.9% increase and condo and townhouses saw an increase of 12.2% at $264,380.
With a high demand for housing in Lee county, homes did not stay on the market for long. Single family homes averaged about 59 days on the market and 68 days for condo and townhouses.
Inventory has dramatically decreased compared to August of last year. Single family homes experienced a decrease of 37.1% with only 2.8 months supply of inventory and condo and townhouses saw a decrease of 9.4% with 4.5 months supply of inventory.
Collier County Real Estate market 2020
Collier county does not stay behind in numbers. Although, a luxury market, Collier county has also experienced tremendous growth in population the last few months and with population growth comes the need for housing.
Sales for Collier County saw an increase of 41.8% for single family homes and 34.8% for condo and townhouses.
Median sales price increased by 14.3% for single family homes at $482,839 and 18% at $295,000 for condo and townhouses.
Collier county average prices saw a huge leap for condo and townhouses, a major 66.5% increase, making the average price $656,600 while single family homes saw a smaller increase of 18.5%, averaging $803,029. That is almost double the average price for Lee county single family homes.
Now, considering Collier county is a luxury market, the days on the market were a bit longer than Lee County and the state of Florida itself. Single family homes were on the market for an average of 99 days while condo and townhouses were on the market for 89 days.
Inventory is also low in the area. Single family homes saw a decrease of 32.8% with 4.0 months supply of inventory and condo and townhouse experienced a decrease of 1.5% with 6.0 months supply of inventory.
Do you believe the real estate market will continue to stay strong or will we start seeing lower sales numbers as the new year approaches? Would love to hear your input.
** Information provided by the National Association of Realtor, Florida Association of Realtors and the Royal Palm Coast Realtor Association.