The New Smyrna Beach Board of REALTORS (NSBBOR) has published the June 2020 market detail report. The report describes member activity in the MLS for southeast Volusia county across all inventory.
Summary of Statistics:
The April crash during stay at home orders was just a speedbump in an otherwise strong seller’s market. Some are skeptical about the recovery noting that the housing market cannot boom with an economy that has already lost 40 million jobs. Homebuyers are already facing challenges as credit tightens and prices continue to rise.
June is considered “in season” for Volusia coastal communities. As the report shows, single family home (SFH) inventory has declined 40% compared to this time last year. Year to date, SFH median sales price is up approximately 6% compared to June 2019. Condo/townhome inventory is also down. Condo price points have averaged similar pricing from this time last year with median sales price around $285,000, showing a change of less than 1%. New pending sales are down across all inventory close to 50% compared to June 2019.
I am working with buyers that are relocating to live the beach life, families that are downsizing and want walkable neighborhoods. Some buyers are looking for a second home/rental on the beachside. I have some contacts that are young professionals shopping for their first home.
Overall, the inventory has declined and prices are up. Cash sales are up across all inventory. Buyers are submitting offers, with financing, and the contracts are closing. In some cases, the financing process is less than 45 days.
According to Freddie Mac, at 3.23 percent, the average 30-year fixed-rate mortgage is down compared to this same time last year. Recently, the 15-year fixed-rate mortgage dropped to 2.77 percent. Economists at Fannie Mae predicted in June that 30-year rates could go as low as 2.9 percent in 2021, however it’s unclear yet what effect the COVID-19 pandemic will have over the long term.