What did Irma do to our real estate market?

I always try to have some general information on our market conditions. Here in Brevard County; our conditions have been about the same for the last couple of years. We have about 3,100 properties for sale at any given time in our MLS and we sell, on average; 1,100 properties a month. This is just under a 3 month supply. We start the year out a little slower, selling about 900 properties in January and February and this number jumps to 1,200-1,300 (+/-) from March through September and we end the year with around 1,100 a month for November and December.

We were on track for another repeat…until Irma came to town. September sales dropped to 932. OK, we just had a major storm come through Florida. Houston was just hit with Harvey. Maria then came through the Caribbean…it makes sense we were a little low for the month. We should make up for things in October; right??? Well, October sales were down too…we closed 939 properties in October…Lets see what November brings…November numbers came in with 989 closed; down about 100 units from 2016…Three months in a row under 1,000 properties sold; it is time to take a close look to see what is going on.

I like to keep an eye on our active inventory versus the sales per month just to see where things are at. Except for January and February; we have been under a 3 month supply of property for sale for the last few years. March through August of this year we have had anywhere from 2.2 month supply to 2.6 month supply. September, October and November put us around 3.3 month supply.

What is a sellers market? When our inventory levels are at a 3 month supply or less. A balanced market is in the 4-6 month range. A buyers market is when our inventory is over 8 months supply.

So, is there a cause for an alarm? Not really…our active inventory today is still just over 3,100. This is in line to where it has been for a while. It is just something that we need to keep an eye on. Instead of having a 2.8 month supply of homes. We are at a 3.3 month supply of homes. A slight increase. As long as it stays under 4; our market should continue trending in the same manner it has been. I look at the active inventory level every day I log into the MLS. I have been doing a casual look at the monthly sales because it has not really changed in the last 3- 4 years. BUT, I remember how quickly inventory jumped about 10 years ago. I promised myself to be a little more prepared in the future and that is all I am doing now. Keeping an eye on things to see if there is a shift happening. The reality is, we are certainly due for a shift. We have been in a seller’s market for almost 4 years.

I know there are quite a few buyers that are hoping for a little break. They have been looking at a small selection of homes that meets their needs. When they do finally find one that seems to fit; they are competing with multiple offers. Yes, this is great for a seller; just a little added stress for a buyer. 

I will be posting monthly updates on our Brevard County real estate market. If you would like specific information on your city, town or subdivision; please let click on the link below and let me know & I will get this to you.

I would like more information on sales in my area

Eric Larkin321.795.1854 (1)

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