Ocala Florida Housing Market Update – June 2021
The Ocala Florida housing market continues to be red-hot. Median home prices increased over 30% year-over-year in June. All indications are that home prices will continue to appreciate as demand appears to continue to keep pace with supply. The market saw 740 pending sales versus 817 new listings. Inventory is still historically low, with only 1 month of inventory available. A balanced market is around 5.5 months of inventory. This means that we would need an additional 3,400 listings to be considered a balanced market.
Ocala Florida Housing Market Number
Another indicator that the Ocala Florida housing market continues to be on fire is that sellers are getting 100% of their asking price for their properties. This number indicates that sellers are still in an amazing position when it comes to being able to sell their homes. The seller has all the leverage, since they typically have more than one offer to choose from.
Other numbers of interest include:
Overall sales – 37% increase over last year
Paid in cash – up 72% over last year – this is an indication of increased investor participation in the market.
Median time to contract – 8 days, down from 37 days in 2020 – that is mind blowing
Ocala Florida Housing Market Real Estate Investors
So what does this mean for real estate investors? If you own real estate in the Ocala Florida housing market, your asset has substantially increased in value. You are in a position to sell at any time and if priced right, your home will sell quickly and likely close to or above what you are asking (again, if priced right).
Buying homes in the Ocala Florida Housing Market
If you are an investor trying to acquire properties in Ocala Florida? These numbers indicate that you will continue to fight and scrape over every property you bid on. You will be competing against other investors and owner occupants that may not be as rational as you are when it comes to bidding. I believe in times like these it is more important than ever to be diligent and stick to your numbers. You will not likely win many deals in this market and frankly that may be a good thing. Better not to win than to get stuck overpaying for an investment.
Unfortunately for those of us looking to build our portfolio, I don’t believe this will change anytime soon. The market fundamentals appear to support further price appreciation. We have record low inventory, record low interest rates, tight lending standards and household formation is outpacing housing availability. My best advice is to keep looking and trying but be patient and be prepared to strike-out more than you hit.