Northeast Florida Market Update | September 2023

October 26, 2023


“It’s not how much we give, but how much love we put into giving.” Mother Teresa


There was a huge amount of love put into giving at our Jim Davidson Annual Clay Day on October 19th. We were able to donate $150,000 to local charities that he loved. Thank you from our entire family for the love and support!


The September market stats from the Northeast Florida Association of Realtors show that prices remain stable, closed and pending sales are down and supply is up.


The median sales price of all types of properties in all six counties is $350,000 which is down 1.4% from $355,000 in August. The prices have moved up and down slightly on a monthly basis to stay in a small range for the last year.


There were 2,188 closed sales in September which is down 13.1% from August. There were 2,070 pending sales which is down 9.4% from August. The reduction in sales and closings is a result of mortgage interest rates nearing 8%.


Mortgage interest rates are greatly affected by the 10-year Treasury rate which popped briefly above 5% recently. Federal Reserve Chair Jerome Powell said Thursday that many factors could be contributing to the swift rise in the 10-year Treasury yield. They include the U.S. government’s big deficits, which require more federal borrowing, and the Fed’s ongoing efforts to reduce its trove of bond investments built earlier to keep yields low. The Fed was buying these bonds back during Quantitative Easing.


When there are less buyers of the bonds, the interest rates must be higher to get investors to purchase. China and Japan have not been buying U. S. Treasury Bonds recently but using the money to support their own currencies which were being devalued.


Until we see some reduction in the mortgage interest rate, I don’t expect sales and closings to improve.


The active inventory of 6,842 homes is up 12.0% from August. The months supply of inventory is 3.1 months up 28.9% from August. A five-to-six-month supply is considered a balanced market. Keep in mind that mathematically, if closings are down in a month, the months supply goes up.


Most buyers and sellers are in a holding pattern waiting to see what happens with the economy and mortgage rates. There is still not enough supply of homes, so prices have remained stable.


Enjoy this glorious weather and please let us know if we can help you with any real estate needs. Thank you again for your support of our local charities.




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