Sales are slowing, inventories are rising and homes have never been so expensive in Northeast Florida, according to the Northeast Florida Association of Realtors.
“Observing a longer data history, this is by far the biggest seasonal slowdown seen in many years,” the organization said in a news release Nov. 9 about October market conditions.
“The monthly supply of inventory in the region increased to 3.5 months,” NEFAR President Diana Galavis said in the release, noting there was a 19% increase since September. “Overall, the Northeast Florida market is strong with the sales median holding with very little change.”
The report said homes have never been so expensive in Northeast Florida. The region’s Home Affordability Index for single-family homes slid 4.5% to 63, registering at an all-time low.
An index of 100 is defined as the point where a median-income family has the exact amount of income needed to purchase a median-priced existing home.
The high cost of housing has a lot to do with high interest rates, Galavis said.
“Interest rates reached the highest levels in October. Buyers were cautious and took a little longer to make offers, which reflected in higher median days on the market,” she said.
According to the Federal Reserve, the 30-year fixed rate mortgage average in the U.S. is 7.76%. By comparison, in 2021 it was 3.09%.
The Fed has been increasing interest rates to cool inflation.
“The cost of goods, services, and borrowing money is much more expensive today than a year ago,” Galavis said. “Buyers are pausing to see which direction the Federal Reserve, stock investments, and the real estate market will move.”
Northeast Florida statistics from the report:
Duval
• The October, the median price of single-family homes was $320,000, down 3.6% from September.
• The median days on the market in October increased to 38, a 22.6% increase from the month before.
• Month-to-month, closed sales fell 12.8% to 765, pending sales rose 4.7% to 795, and new listings increased 6.9% to 1,415.
• Active inventory for the county rose 11.2% to 2,422 homes, a 3.2-month supply.
• The Home Affordability Index remained stable from the month before at 75.
Clay
• The median price of single-family homes rose 0.5%, to $361,250.
• The median number of days on the market increased 3.7% to 42.
• Month-to-month, closed sales fell 7.9% to 234, pending sales dropped 14.2% to 199 and new listings rose 2.6% to 356.
• Active inventory for the county rose to 718 homes, an 11.3% increase from September and showed a 3.1-month supply.
• The Home Affordability Index fell 4.3% to 66.5.
St. Johns
• October median prices increased 0.9% to $540,000 for single-family homes.
• The median days on the market jumped up 14% to 49. Month-to-month, closed sales fell 2% to 401, pending sales dropped 4% to 407 and new listings rose .01% to 700.
• Active inventory rose to 1,675 homes, an increase of 5.1% from September 2023, and 4.2-month supply.
• The Home Affordability Index fell 4.3% to 45, indicating St. Johns County is the most expensive county to live in Northeast Florida.
Putnam
• In Putnam County, the October 2023 median price of single-family homes was $229,900, a 7.6% drop from September 2023.
• There was an 11.8% increase in active inventory to 189 homes.
• With a Home Affordability Index at 105, Putnam County is the most affordable place to live in Northeast Florida.
Nassau
• The median price of a single-family home was $400,000, a 1.3% increase from September.
• Active inventory increased 8.4% to 376 homes, a 3.5 month supply.
• The Home Affordability Index registered 60, a 4.8% fall from the month before.
Baker
• The median price of a single-family home increased to $315,000.
• New listings fell 47.1% to 18 and active inventory dropped 8.3% to 55 homes, a five-month supply.
• The Home Affordability Index registered at 76, falling 16.5% from the previous month.