It may only be February, but when it comes to buying and selling homes in Northeast Florida, it seems that spring is already here.
“The weather is warming up and so is the market,” said Northeast Florida Association of REALTORS® 2023 President Diana Galavis, noting that it seems like the spring selling season has already landed in Jacksonville.
Active inventory gradually rose in January 2.6% to 5,011 units in the six-county region, and the month’s supply of homes has risen 57.5% since December 2022. This demonstrates a further stabilization of the housing market, which is something both buyers and sellers can cheer about.
“The Spring selling season is off to an early start with more available inventory for buyers. Sellers are confident and ready to move, which is reflective of the number of new listings on the market,” Galavis said. “The affordability index has increased to 76 which gives more opportunity to buyers looking to afford a home. More days on the market are a breath of fresh air for some buyers. This allows buyers to feel less pressured and enjoy more breathing room as they shop for a property. Buyers seem to be more comfortable with interest rates and are ready to take advantage of the much-anticipated spring market.”
At 76, Northeast Florida’s Home Affordability Index reflected a 4.1% increase in January from December’s mark of 73, and a considerable improvement from 2022’s low of 67 in October. The Housing Affordability Index measures housing affordability for the region. In other words, it measures whether a typical family earns enough to qualify for a mortgage on a typical home, based on current interest rates, median income, and median home prices. A higher number means greater affordability. An index value of 100 means that the average family has exactly enough income to qualify for a mortgage.
“Northeast Florida’s Home Affordability Index rose to 76 in January, giving buyers who are entering the market a better opportunity to afford a home,” Galavis said.
In January, the median sales price of single-family homes in Northeast Florida was $360,000, a mild 2.7% drop from the previous month. Pending sales in January rose 29% to 1,698, while new listings jumped 34% to 2,650. The median number of days on the market in January was 55, a 14.6% leap from the prior month. Meanwhile, closed sales dropped to 1,074, which is a 34.9% decrease from December 2022 and indicative of the housing market as it says goodbye to the holiday season.
“The January market reflects a significant increase in months of supply, moving Northeast Florida closer to a stable market,” Galavis said. “Closed sales were down for January, but this is a typical slow up for the time of year. Factors such as interest rates, loan processing times, and inventory play a role in the lower closed sales in January,” she said.
NEFAR’s market reports are available at nefar.com.
