Davidson Realty, Inc.

Northeast Florida Market Stats | December 2023

January 25, 2024

 | 
Posted by in News, Northeast Florida Market Trends

“Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that.” Martin Luther King, Jr.

Dr. King had so many amazing quotes, but this is one of my favorites. We need more light and love.

 

Let’s review 2023 and look forward to a better 2024 for the real estate market. The Northeast Florida Association of Realtors (NEFAR) market review for December 2023 shows a slight decline of 1.4% in the median sales price from November. The median sales price of $360,000 is up 6.5% from last year (the numbers used are from all types of properties in all 6 counties). The median sales price has moved up and down monthly, but prices have been fairly stable.

 

There were 1,922 closings in December which is 4.5% more than November; however, we are down 13.5% from last year. Pending sales of 1,590 were down 11.5% from November and 9.8% from last year. The number of transactions has been very low in 2023 mostly due to high mortgage interest rates and affordability.

 

Even though the Federal Reserve has not cut interest rates, the 30-year mortgage rates have dropped more than one percentage point. This has been caused by the 10-year Treasury yield dropping and the spread between the 10- year and 30-year mortgage rates shrinking for eight straight weeks. The spread is still larger than the historic average, but it is at its lowest since March.

 

From The Wall Street Journal (01/04/24) Ben Eisen, “Banks and the Federal Reserve have purchased fewer mortgages since the Fed began increasing interest rates to curb inflation. The central bank’s forecast that rate cuts are on the horizon has led to higher investor demand for mortgages, pushing down the spread.”

 

There are 3.6 months supply of inventory at the end of December. A balanced market is 5 to 6 months of inventory.

 

With the new year, we will possibly see lower mortgage rates create more buyer demand and more sellers deciding to move. I believe we will see a good spring market.

 

Have a prosperous and blessed 2024 and please let us know if we can help with any of your real estate needs.

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About the Author
Sherry Davidson
President of Davidson Realty

Since launching Davidson Realty in 1989, Sherry Davidson has built the firm to include nearly 60 agents and exceed $100 million in annual sales. She is known throughout the First Coast as an authority on all things residential real estate, having served on the Board of Directors for Northeast Florida Association of Realtors, Florida Realtors® (a division of the National Association of Realtors), and Builders Care (charitable arm of Northeast Florida Builders Association).

Thanks to Sherry’s leadership, Davidson Realty has been recognized as one of the state’s Best Companies to Work For (Florida Trend Magazine), as well as one of the region's Best Places to Work and 50 Fastest Growing Companies (Jacksonville Business Journal). Get to know Davidson Realty’s talented team of agents by clicking here or call us at (904) 940-5000.

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