The New Smyrna Beach Board of REALTORS (NSBBOR) has published the July 2020 market detail report. The report describes member activity in the MLS for southeast Volusia county across all inventory.
Summary of Statistics:
Volusia closed single family home sales are down 42% compared to July 2019. Condo and townhome closed sales are also down 44% compared to this time last year. New pending sales for each product are down over 60%, continuing a decline since May 2020. Good news is that median sales prices for each remain as an upward trend, but do not show much change compared to this time last year.
Overall, Volusia county remains in a seller’s market. Inventory has declined and prices are increasing while leveling out. Home price increases can be attributed to true home appreciation being driven by low mortgage interest rates inducing greater demand. When rates go down, prices are getting bid upward. The net decline of inventory compared with May to June 2020 does show the rate of new listing inventory in July as improving, little by little.
Dollar volume, the sum of all sales prices during the month, across all Volusia inventory also reports a decline of more than 35%. Sales were hit overall in April 2020, the beginning of the COVID-19 pandemic. Single family home volume is up only slightly and condo/townhome volume is down over 10%. The slight increase in single family home volume may come from higher priced homes selling. Normally this bracket is cooling down, but is now unusually active since peak seasons were pushed back.
Mortgage buyer Freddie Mac reported Thursday, August 20, 2020 that the average rate on the 30-year home loan increased to 2.99%. By contrast, the rate averaged 3.55% a year ago. The average rate on the 15-year fixed-rate mortgage rose to 2.54% from 2.46% from the previous week.
According to a recent housing market report published by Florida Realtors, the government’s latest report on unemployment claims showed that the number of workers seeking benefits crept back above 1 million after weeks of declines. Many businesses and consumers remain paralyzed by uncertainty and restricted by lockdowns.