After an incredible home sales market in 2021, we are now finally seeing the effect of lower inventory in the first quarter of 2022. Year-to-date only 15 properties have closed in Jonathan’s Landing compared with 30 closed properties in the first quarter of 2021. While there are currently 14 properties under contract, that will not make up for the shortfall. It is a very different market this year. Every new listing has multiple offers, with most at or above asking price. Another trend we are experiencing is that the biggest reduction in inventory is saltwater properties, which continue to have a high demand. Very few of these sought after properties have come on the market in the last six months.
With that said, the question on everyone’s mind is “when will this market end or flatten?” because there seems to be no end in sight to this market dynamic. For the naysayers that feel this market will end soon, there is no evidence to support this. In fact, there are more interested buyers this year and in the last 90 days prices have surged another 10% to 15%. In the Jonathan’s Landing condo market sales are particularly strong with one record price after another. Looking ahead, it will be interesting to see how inflation, increasing interest rates and higher energy prices will impact demand for Florida real estate. Our view is given the fact that we live in a mature community and over 80% of sales are cash buyers, that Jonathan’s Landing is somewhat insulated from these key macro-economic factors.
The market driver is that Florida has become the Must Live Destination for many. Businesses are relocating, work-from-home culture shift, baby boomer retirements, wealthy leaving the Northeast from tax reasons, and the beautiful climate are the key reasons why people are making the move to the Sunshine State.
If you are considering selling your Florida home, there has never been a better time! Sellers are asking top dollar and dictating the terms of most contracts. There continues to be many buyers looking for homes in Jonathan’s Landing. There is a high demand for both condos and single-family homes, especially those that have been renovated, as many buyers prefer to move into a home with no work required. Some sellers have been reluctant to sell without a place to move to themselves. But the fact is many buyers are allowing sellers to rent back for extended periods or until they find their next home.
If you are planning to sell your home, the strategy and approach you take is paramount. You are doing yourself a disservice if you sell to your neighbor or friend without testing the market! We are seeing some homes being sold as much as 30% above asking price. Please contact the Team at Jonathan’s so we can provide sellers with a customized marketing plan to drive an optimal outcome and buyers with a guiding hand through this demanding sales market.