As can be expected in a marketplace marked by low inventory, inflation and climbing interest rates, prices in Northeast Florida’s housing market remained high as they continued to stabilize at the beginning of the holiday season.
And while closed sales increased in October, which is unusual at a time when buyers and sellers turn their attention to end-of-the-year festivities, all other housing metrics point to a massive shift in the market as the new year approaches.
The median price of homes in Northeast Florida’s single-family market rose 1% in October, settling in at $383,500. Closed sales rose 12.4%; however, it is important to remember that many homes went under contract just as the mortgages began to climb in September.
Houses spent more time on the market, increasing to a median of 39 days, an 8.3% increase from the month before. New listings increased 23.5% and active inventory rose 19.1% to 5,664, which is somewhat higher than during the pandemic but low by historical standards. October registered a 3.1-month supply of inventory.
Meanwhile, homes in the region became less affordable. October’s home affordability index sank 8.8% to register at 62. The index measures housing affordability for the region, by measuring 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.
“As expected, the real estate market continues to stabilize, as we close out the month of October and move into the holiday season,” said 2022 NEFAR President Mark Rosener. “This year has been a bit of a bumpy ride navigating through the end of the pandemic, the rise of inflation, the mid-year elections and the rise of interest rates. The combined single family, condo and townhouse median price has fluctuated between $350,000 and $375,000 since March 2022 in the Northeast Florida Association of Realtors’ six-county area settling in at $359,990 at the end of October.”
In the Northeast Florida combined single-family, condo and townhouse market, closed unit sales rebounded 12% after the 24.8 % decrease in September due to Hurricane Ian. Pending sales fell by just 2.6% in October compared to September in line with the historical seasonality of home sales in the fourth quarter. The median days on market increased 8.3% to 39, new listings increased 21.7% to 3,898 units, active inventory rose 18.7%, to 6,805 homes, and months of supply rose 6% to 3 months.
“All these metrics have increased compared to the previous month, which is also in line with the seasonality of the real estate market and demonstrates a rebound from the interruption brought about at the end of September by the hurricane,” Rosener continued. “Three months’ supply is still considered a ‘sellers’ market, although it is far from the frenzied market that we saw in 2021 and early 2022. We are much more in line with the last normal pre-pandemic year of 2019, which is a good sign for both buyers and sellers. There have been so many changes in the market this year that it is essential for anyone looking to buy or sell to lean on their trusted Realtor to help them understand their hyper-local market and work through the process.”
In St. Johns County, October prices dropped slightly by 0.3% to a median price of $553,059 for single-family homes. The median days on the market were 49, a 34.3% increase from the month before. Month-to-month, closed sales increased 32.4% to 449, pending sales rose 3.5% to 351, and new listings increased 20.9% to 664. Active inventory rose to 1,363 homes, an increase of 11.3% from September, and a three-month supply. The affordability index dropped 6.5% to 43, demonstrating that St. Johns County continues to remain the least affordable area to live in the region.
In Duval County, the October median price of single-family housing was $333,000, a slight increase from September when it registered $332,000. The median days on the market in September was 34, a 2.9% drop over June. Month-to-month, closed sales increased 9.4% to 923, pending sales dropped 3.4% to 775, and new listings rose dramatically 33.5% to 1,833. Active inventory for the county was 2,762 homes, an increase of 26.5% from last month and a 3-month supply. In October, the home affordability index registered at 72, a drop of 7.7% from the month before.
