The busy selling season has arrived with prices and closed sales climbing up much as expected.
In May for single-family homes, the median price rose 4.6% to $386,990 in the six-county region. Mirroring higher prices, closed sales climbed 11.9% to 2,049, pending sales inched up 2% to 2,169 and new listings rose 8.2% to 2,990. Homes were readily snapped up with the median days on the market resting at 33 days and the months’ supply of inventory dropping to 2.2 months.
“It seemed that April’s showers brought May flowers for sellers,” said 2023 NEFAR President Diana Galavis. “The median sales price had an upward swing similar to closed sales during the past month.”
“Homes are selling quickly with an 8% decrease for the median days on market settling at 33 days. Over 15% of closed homes sold over the list price,” Galavis continued. “Months’ supply of inventory decreased to 2.2 months. This is a direct reflection of buyers entering the market and not enough inventory to meet the demand. Factors such as summer break, more availability of supplies for upgrades and repairs, and interest-rate stabilization are affecting inventory.”
But as mortgage rates continue to climb and affordability continues to drop, the percentage-of-list price received is going down. In many cases, it seems that buyers are no longer willing or able to pay over-inflated prices for homes.
In May, with rising prices and not enough inventory to meet demand, the Home Affordability Index for single family homes in Northeast Florida dropped to 69, a 5.5% decrease from the 73 it had registered in April.
The Housing Affordability Index measures housing affordability for the region. In other words, it measures whether a typical family earns enough to qualify for a mortgage on a typical home, based on current interest rates, median income and median home prices. A higher number means greater affordability. An index value of 100 means that the average family has exactly enough income to qualify for a mortgage.
In these challenging times, both sellers and buyers need to understand that it is important to have a real estate expert by their side when they navigate the housing market, said Galavis.
“Realtors have ethics, expertise and insight into the market, particularly in specific neighborhoods,” she said. “It is important to use a professional to navigate the process of buying, selling, or investing in real estate. Realtors provide resources and support, whatever the transaction.”
In St. Johns County, May 2023 median prices climbed slightly higher to $561,981 for single-family homes. The median days on the market were 36, a 2.7% decrease from the month before. Month-to-month, closed sales rose 16.7% to 516, pending sales dropped 0.4% to 539, and new listings jumped 11.2% to 814. Active inventory rose to 1,346 homes, an increase of 8.5% from March 2023, and 3.2-month supply.
The affordability index slid to 48, demonstrating that St. Johns County continues to be the most expensive area to live in the region.
In Duval County, the May 2023 median price of single-family housing was $330,000, a slight 1.5% increase from April 2023 when it registered $325,000. The median days on the market in May was 30, a 3.2% drop over April. Month-to-month, closed sales rose 8.4% to 1,014, pending sales increased 6.6% 1,098, and new listings increased 14.6% to 1,499. Active inventory for the county rose 4.3% to 1,984 homes, a two-month supply and a 122.7% hike from the year before.
In May, the home affordability index showed housing was becoming less affordable by registering at 81, a 2.4% drop from the month before.
