The third quarter this year in Central Florida was marked by some tumultuous trends, least of which was the threat of Hurricane Irma (which luckily left most of our county unscathed). Here’s exactly what this past quarter looked like, and what buyers and sellers can expect going forward.
A literal perfect storm of poor conditions has caused Marion County’s real estate market to flag slightly this quarter. Low inventory in a seller’s market combined with the destruction wreaked by Hurricane Irma and other natural disasters across the country led to overall sales falling by 4%. The market has also become a hostile environment for first-time homebuyers. Average and median sales prices have been trending higher and higher, discouraging first-timers from entering the market at all. However, this is good news for sellers and those considering putting their home on the market. Low inventory and rising prices mean more demand—and a better deal for you when selling your home.
Sales of properties $100,000 and under have seen an 82% decrease in the third quarter. While previously, foreclosures dominated this price range, the number of foreclosed homes has fallen over 50%, meaning that this demographic isn’t seeing the house-flipping and rental activity that normally stimulates it. However, less foreclosed properties in the market means a rise in property values, so once, again, sellers can expect favorable conditions for listing their homes.
The $600,000 dollar range saw sales fall 85%, but our real-time stats show sales of luxury properties picking up for the fourth quarter. The final quarter of the year is shaping up to be a good one for our higher-end, luxury inventory.
The raw data from this past quarter gives us an interesting window into how natural disasters can affect local markets—but not necessarily for the worse. While overall sales have fallen slightly, and worries over this summer’s various storms made buyers a bit skittish, a low inventory combined with rising prices has created a fertile seller’s market. First-time buyers may not be able to muscle in as easily, especially on properties below $100,000, but a healthy demand still exists and will lead to excellent results for sellers.
For more on quarter stats, market fluctuations, and the best time to buy or sell, contact a Showcase team member! We’re privileged to be your local resource for quality local, regional, and national real estate market information.