October proved to be one of the strongest months on record, continuing the streak of this unprecedented market. Scarce inventory and low rates continue to drive prices for the resale market, and labor and building material costs coupled with market demand are pushing new construction prices to new heights. These conditions are setting the real estate market up for a blistering finish to the year.
October was up over the previous month and 17% over last year’s sales for the month. The MLS recorded the highest number of sales for October ever.
The median sale price reached an all-time high of $290,000.
Once again, the newest residential and condo listings were added for the month in 3 years.
The average days on market for the month was 19 days which was up slightly from August’s low of 17.
The $200k-299k and $160k-199k price points tied for the hottest price points for the month averaging 10 DOM.
Without any major catalysts, the market is still trending in the same direction - higher prices and ever lower days on market. Even with record levels of inventory being brought to market, it continues to be absorbed by buyer demand. It is our expectation that these conditions will be upheld throughout the end of the year.
Interest rates and increased inventory are the two most significant factors that can change the current market dynamics, but with supply chain issues throttling the ability to bring new homes to market and uncertainty about how quickly and to what extent asset purchases by the Federal Reserve should be tapered, we are unlikely to see any dramatic changes.
October has set the tone for the last quarter of the year, and we are poised to have the strongest year the Pensacola real estate market has ever experienced. While certainly, this is something to be excited about, there is also a lot of uncertainty about what the future holds. What will higher interest rates do to the market, and when will they rise? How will housing affordability be addressed with chronically low housing inventory and increased building material and labor costs? Time will tell...
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