Home Prices Aren’t Declining, Despite Headlines
If you’re thinking about buying or selling a home in St. Augustine, you’re in for an adventure. Real estate in America’s Oldest City has been competitive, basically ever since Ponce de Leon landed in 1513. The market here is dynamic, with its own set of challenges. Unlike other regions in Florida, there is a finite amount of land available in St. Augustine. The number of potential properties shrinks even further if you’re in search of a waterfront view.
Luckily, as the top agency in the historic downtown, Vilano Beach, and Anastasia Island, you can trust The Newcomer Group to guide you through the unique trends of this always popular market.
Home Prices: A Rising Tide
First things first, let’s talk about home prices. Contrary to some alarming headlines you might have seen, home prices in St. Augustine are not declining. According to Zillow, they are 1.2% higher than they were a year ago (as of June 2024). Prices are expected to keep rising, although at a slower pace. This trend isn’t just local – it’s something we’re seeing across the country.
You might be refreshing your favorite real estate website every day, constantly checking prices. While there are more price reductions, the actual selling prices are still on an upward trend. Keep this in mind when thinking about making your move. It’s likely a home bought today will already be appreciating in value by the end of the year.
Understanding Asking Price vs. Sold Price
It’s essential to understand the difference between the asking price and the sold price. The asking price is what the seller hopes to get, but it’s not a guarantee. With higher mortgage rates and more savvy buyers, sellers sometimes have to adjust their expectations.
If your home is listed and several weeks go by with little interest, your agent might recommend lowering the asking price. This adjustment will attract more buyers. It’s a classic case of understanding the market and being flexible.
On that note, you might have noticed more homes with price reductions lately. This isn’t a sign that the market is crashing. Instead, it’s a response to current market conditions. Sellers are adjusting their prices to reflect the realities of higher mortgage rates and more cautious buyers during an election year.
While it’s true the latest report from Realtor.com also shows 16.6% of homes on the market had price reductions in May 2024, which is up from 12.7% in May 2023, that doesn’t mean overall home prices are in a free fall. Quite the opposite, as we learned above.
Even with more price reductions, home values are still growing on an annual basis, as they do nearly every year in the housing market. According to the Federal Housing Finance Agency (FHFA), home prices went up 6.6% over the last year (see below):
This map shows how prices rose just about everywhere in the country, indicating the market is not in decline.
Asking prices and final selling prices are different statistics. It’s important to note for potential sellers, that those all-important final selling prices are still on the rise.
If we can impart one piece of information to you: Actual sold prices are still rising.
Strategic Moves for Sellers
For sellers, understanding the need to adjust your asking price can lead to faster sales and fewer negotiations. Setting a realistic price from the start can attract more serious buyers and make the selling process smoother.
Navigating the real estate market in St. Augustine can sometimes feel like being on a ship in a storm, but understanding the trends and data can help you make informed decisions. Whether you’re buying or selling, being aware of current market conditions, setting realistic expectations, and staying flexible can make the process smoother and more rewarding.
With inventory remaining tight, price moderation is more likely than significant price declines. This trend suggests that while we might see more homes with price reductions, the overall market remains strong. Don’t let sensational headlines sway your decision-making. Instead, look at the broader trends and data. Think of it as “battening down the hatches” – it might not feel pretty, but your ship will safely reach port and you can sell your cargo for a handsome profit.
