Weekly Special | April 14, 2017

Hottest Zip Code Sees Soaring Home Values

Home values are rising rapidly in the 32312 zip code, up 4% in 2016 and already up another 3.4% through March of 2017.

The red line in the graph above shows the change in home values each year (measured price per square foot on the right vertical axis).

The blue bars show a surprising trend, as the number of homes sold in the first quarter of each year is in the second consecutive year of decline.

I know how hot this zip code is with our homebuyers right now, so it is my belief that declining supply is the reason that we are seeing fewer homes sold. If more sellers in the 32312 zip code wanted to sell their homes, buyers are waiting.

What To Expect From 32312 You can expect inventory below $400,000 to continue to be scarce as land availability (or lack thereof) will push construction costs higher. So long as the schools in this area remain at the top of the grading scale, demand is not going to diminish.

High end homes remain over-supplied, but so long as mortgage interest rates continue at half of their 50-year average, sales will remain robust. But watch sales slide at the high end with every 1/2% increase in the prevailing rate.

This issue went with a longer report on our blog: read the full blog post. The original one-page Weekly Special PDF is still available.