Northeast Florida Market Update | July 2023

August 28, 2023


“Love makes your soul crawl out from its hiding place.”

–Zora Neale Hurston


Many of you know my husband just passed away. I just want to thank everyone for the expressions of love. Our family is overwhelmed.


The Northeast Florida Association of Realtors (NEFAR) market stats for July show a slight increase in home prices, fewer closed sales, and slightly more inventory available.


The median sales price of $361,750 is 1.2% higher than June’s $357,500. As I mentioned last month, the prices bottomed out in January 2023 and continue to rise slowly.


The closed sales of 2,294 dropped 20.2% from June’s number of 2,873. Diana Galavis, 2023 NEFAR President said “Interest rates, the cost of goods and services, and available supply are all factors in the decline in closed sales.”


The 30-year mortgage interest rate is a huge factor in our market. Recently rates have been hovering around 7% and many buyers and sellers are on the sideline.


Lawrence Yun, The National Association of Realtors Chief Economist said “life circumstances- such as a new job, a marriage, the birth of a child, a divorce or death – tend to prompt movement within the housing market. Buyers today, however, are choosing to stay put even when those major life events occur because the market is so difficult right now. That’s exacerbating the tight inventory. Under a normal situation, they would buy or sell a home to adjust to a circumstance. But they’re not doing that now… Maybe the house is a little small, but they love their interest rate.”


Yun also pointed out that only about 27% of transactions being completed involve first-time homebuyers. That mark typically is about 40%.


Lawrence Yun still believes mortgage interest rates should be near 6% by year end. His reasons are:

  1. Rents will calm down. The private estimates of rent increases are well below the government estimates which factor into CPI and influence the Fed interest rate changes. He believes as the rent increases continue to drop, CPI will drop, and the Fed will stop rate increases.
  2. The Fed will want to stop the suffering Community banks are feeling from the high interest rates.
  3. The normal spread of mortgage interest rates with government bonds will stabilize.


The active inventory of homes increased this month, and the months supply of inventory went to 2.7 months from 2.0 months in June.


Stay cool and enjoy the end of summer. Please let us know if we can assist you with any real estate needs or questions.

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Davidson Realty