It appears that the Northeast Florida housing market is slowing to what is expected in a rising interest rate environment.
Although the median price of single-family homes rose 1.3% over the region to $405,000, other factors indicate that the market has stabilized and that interest rates that hover around 7% may be finally catching up with buyers.
Throughout the region, housing inventory increased more than 31% to 7,764 homes, a 4.1-month supply and the highest since January 2019.
And other market statistics are not what we usually see in the month of June. Closed sales usually go up, not down, yet in Northeast Florida for single-family homes closed sales declined nearly 11% to 1,907. Similarly, pending sales usually go up and not down in June, yet pending sales last month plummeted 35% to 1,261 homes.
“The Northeast Florida real estate market is back to a stabilized level between sellers and buyers,” said 2024 NEFAR President Rory Dubin. “Days on market climbed by almost 2 weeks from last month to 39 days, pending sales dropped significantly as well as new listings. Months of supply is now up to 4 months as active inventory climbed towards 7,800 listings,” he continued.
Meanwhile, the region’s Home Affordability Index remained the same as in May with June registering at 63.
The Home 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. This index measures affordability factors for all homebuyers making a 20% downpayment. 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. An index value over 100 means that the family has more than enough income, while a value below 100 means that a family doesn’t have enough income to qualify for a mortgage loan.
NEFAR’s market reports are available at nefar.com.
