In August, TrailMark has 64 homes currently on the market, with an average sales price of $515,000. The average days on market for these homes is 29 days, reflecting a more dynamic environment compared to earlier months. However, new construction is continuing to saturate the market, especially for homes priced above $500,000. These higher-priced homes are seeing longer times on the market, often exceeding 90 days.

BROADER MARKET TRENDS IN NORTHEAST FLORIDA

Northeast Florida has witnessed a 13% decline in closed sales compared to the same time last year, while inventory has increased by 88%. This trend indicates a cooling market, providing more options for buyers, leading to extended market times and potential price reductions.

MORTGAGE RATE PREDICTIONS

Mortgage rates have shown slight decreases recently. As of early August 2024, the average rate for a 30-year fixed mortgage is around 6.89%. Experts predict that rates will remain in the 6.5% to 7% range for the rest of the year, with possible minor declines if inflation continues to cool and the Federal Reserve starts to cut rates later in the year.

BUYER OR SELLER'S MARKET?

Given the increased inventory and the slower pace of sales, the current market conditions are leaning towards a buyer's market. More homes on the market and longer selling times give buyers more options and negotiating power. However, if mortgage rates continue to decline gradually, it could stimulate more buyer activity, potentially balancing the market somewhat.

PREDICTIONS GOING FORWARD

• Short-term (Next 3-6 months): Expect the market to remain relatively slow with continued higher inventory levels. Mortgage rates may decrease slightly, but significant drops are unlikely in the immediate future.
• Long-term (End of 2024 into 2025): As the Federal Reserve potentially reduces rates later in 2024, mortgage rates might drop closer to 6%, which could invigorate the market and possibly shift towards a more balanced or even seller-favorable market if demand increases.

CONCLUSION

Currently, the market conditions in TrailMark and Northeast Florida favor buyers due to higher inventory and longer selling times. Monitoring mortgage rates and broader economic indicators will be crucial for predicting future market trends.

If you’re a seller, it’s important to hold tight and be patient in this market. For buyers, staying informed and open to re-sale opportunities can lead to finding homes with instant equity, with the potential to refinance at a lower rate when mortgage rates eventually drop in the coming year.