Home Price Update in Brevard County, Florida
After a year of living through a global pandemic and feeling the ripple effect of such a difficult season, the housing market did something rather surprising when the demand for homes increased substantially.
Those hoping to purchase a home in Brevard County, like many eager buyers across the country, experience a very difficult time actually purchasing a house. It seems that whenever a desirable home hits the market, it receives multiple offers in a matter of minutes and sells in the blink of an eye. With mortgage rates recently at a record low, many home buyers are jumping on the opportunity to ensure they receive a great rate at the threat of interest rates rising again (which they’ve slowly started to do).
When it comes to homes in Brevard County, many speculate that newly forged work-from-home policies are causing people from cooler regions to move to the Sunshine State in search of a mild winter and room to play. The reopening of our country and the reduced threat of Covid-19, resulting in a rising economy, could also play a part in the uprising demand for homes. Regardless of why, we know the demand for homes is high, while the amount of homes for sale remains low, creating a seller’s market.
How is a Seller’s Market Determined?
Currently in the Space Coast, as is the case in most of the country, the amount of homes for sale is far below the demand of people looking to buy. It’s a seller’s market! But what exactly defines a seller’s market? If there is a 6 month supply of inventory (MSI) of homes or less (at the current rate they are being purchased), it’s considered a seller’s market. If there’s a 6 month supply or greater, it’s considered a buyer’s market. Since June 2021, the month’s MSI has been at a very low 0.7, which means inventory is low nationwide and seller’s have an enormous advantage!
What Does a Seller’s Market Mean?
A seller’s market means that not only will homes most likely sell quickly, but also for a likely increased price. It’s not uncommon for home prices to increase yearly by 3-5%, but since 2020 they have hiked a steep 12%.
It’s reported the average listing price of homes in Brevard County in May of 2021 was up 8.9% from last year at $298,000, and the median price of homes sold was $290,000.
The comparably affordable housing market in Brevard County, the increase of home sales and the increase of the average home sale prices leaves the rising housing market in Brevard looking encouraging into the near future.
How long will the Housing Market Stay This Way?
Considering what we already know, most experts believe there’s no reason to believe there’s going to be a housing market crash as we’ve experienced in the past, as today’s market has very few similarities to what caused the crash of 2008. Early in the pandemic, some were predicting an influx of foreclosures, but that proved to not be true. A decrease in foreclosures, as Brevard is experiencing now, is a sign of a healthy housing market.
Though the difficulty of purchasing a house right now may lead some to abandon the thought of selling their own, the Mortgage Bankers Association states there is still a high amount of mortgage applications being submitted. This lets us know many are still desiring to purchase – a great sign!
Is Now a Good Time to Sell My House in Brevard County, Florida?
Seller’s should be confident in their chances of getting multiple great offers on a listed home and their home selling quickly. With such a hyperactive market, buyers and sellers are wise to find a trusted Realtor who understands the ever-changing market conditions. If you’re looking to buy or sell a home in Brevard County, call Misty Morrison today to make sure you have the best possible buying or selling experience. Call Misty today 321-209-1523.