Northeast Florida Real Estate Market Update

December 21, 2022

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“Love the giver more than the gift.” – Brigham Young

A quote to live by whether a human giver or our one true holy God.

 

The Northeast Florida Association of Realtors market stats for November continue to show the median sales price stabilizing. The number of closed sales and pending sales are down, and the active inventory is up slightly. I believe everyone was shocked by the speed of the change in the real estate market.

 

The median sales price is $340,000 for November which is down 4.2% from the previous month and up 5.3% from the previous year. The uncertainty and volatility in housing market metrics have economists and forecasters predicting divergent outcomes for the 2023 national housing market.

 

· Redfin Corp predicts home prices will fall 4%.

· Zillow Group Inc. predicts home prices to remain flat.

· Realtor.com predicts home prices to appreciate 5.4%.

· Lawrence Yun, chief economist National Association of Realtors predicts prices to increase 1%.

· Fannie Mae is predicting prices to fall 1.5%.

· Capital Economics is predicting a fall of 8%.

· Wells Fargo & Co. is predicting a 5.5% decline.

 

I think everyone agrees in some areas prices will increase and others decrease, but it doesn’t look like the gloom and doom headlines we are seeing.

 

All the predictions I have seen are for fewer transactions in 2023. Realtor.com is predicting the Jacksonville MSA to have 3% fewer sales in 2023, but prices will increase 4.6%.

 

The active inventory is 7,019 which is up 1.3% from the previous month. The months supply of inventory is 3.8 months which is up 32% from 2.8 months in October. It appears many buyers and sellers are staying put right now.

 

Soaring rents have forced millions of millennials to move back in with their parents. A recent survey by Pollfish of 1,200 people estimated one in four millennials are living with their parents. That’s equivalent to about 18 million people between the ages of 26 and 41. Some economists are predicting a great looming demand as household formation will rise and there are not enough housing units at affordable prices.

 

As we enter 2023, we will see which predictions are the closest. Please let us know if you are considering an investment property or need to buy, sell, or rent. Have a Merry Christmas and a Happy New Year!

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Davidson Realty