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Cooler temperatures do little to temper hot housing market

November 11th, 2021 · Leave a Comment

Although the bidding wars that drove up housing prices in Northeast Florida this summer have cooled somewhat, the region’s hot residential market shows no signs of diminishing, even as temperatures outside becoming colder.

Nationally, existing home sales continue to be plentiful, buoyed up by strong demand, low interest rates, and a slight tick in new listings in recent months, according to the National Association of REALTORS®. In Northeast Florida, the median price of single-family residential housing hit $339,000 in October, an 18.9% increase since October 2020. Active inventory hovered at 3,252 homes, a 6.8% decrease from September, leaving 1.4 months-worth of inventory available to buyers, a 7.6% decrease from September 2021.

“Prices continue to slide upward, while average days on the market and inventory continue to slide downward,” said Missi Howell, president of the Northeast Florida Association of REALTORS® (NEFAR). “The historic market that we saw earlier this year, with double digit offers on almost every sale and more than 100% of the homes receiving offers of at least the asking price or more, has calmed just a bit, more from buyer fatigue and increasing prices. However, we are far from seeing this market end. In October, we had barely a months’ inventory available for buyers, and this challenge does not appear to have any hope of waning.”

Single-family homes in Northeast Florida continued to be less affordable, registering 104 on the affordability index, a measure that accounts for housing affordability within the region. The index aims to measure the ability of a typical family to earn enough to qualify for a mortgage on a home based on current interest rates, median income, and median home prices. Higher numbers mean greater affordability.

Northeast Florida monthly indicators and housing supply overview are available at nefar.com.

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