Northeast Florida Real Estate Market Update

January 23, 2023

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“Too many of us are not living our dreams because we are living our fears.” Les Brown

Don’t be fearful of the real estate market, it appears to be stabilizing after the wild ride we have been on.

 

I agree with Northeast Florida Association of Realtors (NEFAR) President, Mark Rosener’s comments on our local real estate market for December. He pointed out that the closed and pending sales, inventory and sales prices have been relatively stable for the last 3 to 4 months.

 

The median sales price of $337,745 is up 4.6% from last year, but down 0.9% from November. All counties had slight decreases in prices month-to-month except St. Johns County which was up 6.2%.

 

There were 2,096 closed sales which is down 35.9% from last year, but up 7.6% from November. Pending sales of 1,782 were down 29.6% from last year and down 1.8% from November.

 

National pending home sales slid for the sixth consecutive month in November, according to the National Association of REALTORS®. The Pending Home Sales Index (PHSI) – a forward-looking indicator of home sales based on contract signings — fell 4.0% to 73.9 in November. Year-over-year, pending transactions dropped by 37.8%. An index of 100 is equal to the level of contract activity in 2001.

 

“The market may be thawing since mortgage rates have fallen for five straight weeks,” Lawrence Yun, NAR Chief Economist. “The average monthly mortgage payment is now almost $200 less than it was several weeks ago when interest rates reached their peak for this year.”

 

Builder sentiment in the single-family housing market posted an unexpected gain in January, rising for the first time in 12 straight months. Economists had predicted a slight decline. Sentiment rose four points to 35 on the National Association of Home Builders/Wells Fargo Housing Market Index. Anything below 50 is still considered negative sentiment. The metric stood at 83 in January 2022.

 

All three of the index’s components posted gains in January: current sales conditions rose four points to 40, sales expectations in the next six months increased two points to 37, and buyer traffic rose three points to 23.

 

Most of the builders and Realtors I have spoken with are cautiously optimistic that the fear we have seen about rates and prices, is improving with the stability we are seeing.

 

If we can assist you in any way with a purchase, sale, investment property or rental, please let us know.

 

Happy New Year! Wishing you a prosperous 2023,

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