Springs Brings Heat to Port Orange Real Estate
M A R K E T U P D A T E : Spring Brings the Heat to Port Orange Real Estate by Tom Beechler The Second Quarter of 2022 is here, and homeowners and buyers are buzzing to know what this selling season means for our local market. Port Orange is in a unique position compared to other Florida markets; for that reason, every market update we do a deep dive on our hyperlocal housing trends. The most frequent questions I’m getting from Port Orange homeowners are: How are prices in my neighborhood trending? What’s the economic outlook, and how could that affect real estate? What would cause the current trends to change? And most importantly, what will buyers pay if I list my home this spring? No one has been spared from the upheavals of the past two years, and the result has been uncertainty across the board. Workers in many industries lost their jobs overnight, parents and children dealt with work-from-home and remote learning, travel was restricted, surgeries were cancelled, the supply chain choked, prices rose; the list goes on. Priorities shifted from “business as usual” to crisis management. Analysts assumed most people would be reluctant to buy or sell a house, and I prepared our team for a dramatic reduction in transactions. And yet, to the nation’s surprise, this did not occur! Demand for housing spiked; first-time homebuyers sought stability and space, and existing homeowners looked for better spaces and locations to quarantine in comfort. Let’s see how these factors are influencing today’s market. PORT ORANGE HOUSING CONTINUES TO SURGE The problem of low inventory is everywhere, and we’re no exception here in Port Orange. We are a well-established community without a great amount of construction, and our types of properties are exactly what today’s buyers want. Most importantly, our location is among the most desirable in the country. As buyers found themselves with more flexibility regarding location (and wanting bigger, better spaces), demand for our homes has surged throughout the pandemic, and homes listed for sale have not kept pace. This, coupled with fast sales cycles, has led to perpetually low inventory. And it continues to persist, even as interest rates creep toward 5% (up from about 3% over the past two years), because there’s enough demand to weather increases in price and payments. Right now the Port Orange market is seeing results that match these observations: Our median sale price is at $350,000, a 27% increase over last year’s numbers. Meanwhile, active inventory is down 10% and new listings are down 23%, year-over-year. On one hand, it is relieving to see that our situation matches that of other markets across the country. At the same time, it’s worth taking a zoomed-in look at our current market and seeing how legitimate any worries may be. The average selling price in our market has increased by approximately 36% over the past three years. As of December of 2021, we not only exceeded our highest (ever) average selling price, but a high percentage of our listings received multiple bids, driving up the price and resulting in contracts above list price. The months following into early 2022 played out with similarly positive results, especially when we consider that winter tends to bring about a slower market. This spring, the heat is on: we expect homes that are prepped, priced, and marketed well to sell quickly at or near asking price. ADDRESSING RISING HOME PRICES According to Attom Data Solutions LLC, in 2021 singlefamily homeowners across the U.S. paid a combined $328 billion in property taxes. Attom Data Solutions LLC examined almost 87 million single-family homes nationally to gather these figures. Even with home values reaching higher and higher values, the amount of property taxes levied on singlefamily homes in 2021 grew only 1.6% annually. That’s compared to $323 billion in 2020, a stark comparison to the 5.4% increase that occurred between 2019 and 2020. Attom went on to report that effective rates declined as total taxes climbed higher, due to the fact that home values increased much faster than taxes, on a national level. Rick Sharga, executive vice president of market intelligence at Attom, added further comment to the subject: “As home prices continue to go up, that suggests homeowners should prepare for home taxes to go up,” Sharga said. “It’s hardly a surprise that property taxes increased in 2021, a year when home prices across the country rose by 16%. In fact, the real surprise is that the tax increases weren’t higher, which suggests that tax assessments are lagging behind rising property values, and will likely continue to go up in 2022.” It’s always worth a reminder that in this financial climate, one of the best ways to preemptively guard yourself against rising interest rates is by purchasing a long-term fixed asset. Any type of property, such as a house or condo, is clearly a long-term fixed asset that has a great amount of value—and said value doesn’t seem to be diminishing as we proceed into 2022. So if you are trying to decide if now is the right time to sell or buy, let’s connect today to discuss your options. You can reach me at 386-405-1178. I’ll provide a complimentary assessment of your home’s value and share the strategies I use to sell your home quickly, efficiently, and for the highest price. And to all our readers, please enjoy the spring and keeping making the Port Orange area a great place to call home!