Northeast Florida Market Update | April 2023

May 23, 2023


“Intelligence is the ability to adapt to change.” Stephen Hawking


The real estate market has given us an incredible opportunity to adapt to change over the last few years.


The Northeast Florida Association of Realtors market stats for April show a slight increase in prices of homes, fewer closed and pending sales and a small increase in inventory.


The median sales price for April is $339,995 which is down 2.9% from last April and up 2.4% from March. In the National Association of Realtors first-quarter report, nearly seven out of 10 metro markets had home price gains.


Locally, active inventory of 5,938 homes is up 4.5% from March. Many of those homes are new construction and not completed. The supply of existing homes is very low because many homeowners with loans well below current mortgage rates are electing to stay in their homes.


“In March, 33% of homes listed for sale were new homes in various stages of construction,” says NAHB Chief Economist Robert Dietz. “That share from 2000-2019 was a 12.7% average. With limited available housing inventory, new construction will continue to be a significant part of prospective buyers’ search in the quarters ahead.”


There is strong demand and limited supply, and more buyers are purchasing new construction which may cost 20% to 30% more than resale homes, so it is unlikely that we will see home prices decline in our area.


According to the National Association of Home Builders (NAHB) Housing Market index for May, builder confidence in the market for newly built single-family homes rose five points to 50. It’s the fifth month in a row for an increase, and the first time it’s been out of negative-attitude territory since July 2022.


The closed sales of 2,392 are down 17.3% from 2,892 last month and the pending sales of 2,702 are down 5.0% from 2,844 last month. Many potential buyers are being more selective in their purchase and very cautious due to volatile mortgage interest rates and fears of a recession.


I feel very optimistic about the summer and fall for our local real estate market. Please let us know if we can help you in any way. Have a wonderful Memorial Day!

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Davidson Realty