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Rising prices make it more expensive to live in Northeast Florida

July 13th, 2023 · Leave a Comment

In June, it became more expensive to live in Northeast Florida.

The Northeast Florida Association of Realtors reports the Home Affordability Index for single-family homes in the six-county region fell 4.3% to 66, which is the lowest it has ever registered in the region.

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.

“The Home affordability index continues to decrease. Housing demand, interest rates, and labor costs are influencers,” said NEFAR President Diana Galavis.

In June, Northeast Florida’s median sales price on single-family homes settled in at $394,900, a rise of 1.8% from the previous month. New listings – 3,212 homes — jumped 16.6% and active inventory rose to 4,891 homes, a 15.1% increase. Also in June, homes remained on the market a little longer – 33 days, which is a 3.1% increase from May.

“More homes were introduced to the market and buyers are taking a little extra time to shop with increased days on market to just over a month,” Galavis said. “In June, the summer heat made its way to the housing market. It is a sellers’ market with the buyers in control. The median sales price and closed sales were up from May. Sellers received over 98% of the list price. Sellers are pricing their homes in line with the market. This brought the median price down slightly and settled it at a median price of $206 per square foot.”

Pending sales dropped 10.2%, falling to 1,901 in June from a May high of 2,116. Meanwhile the housing supply continues to hover at a low of 2.3 months’ supply.

“Pending sales were significantly down from May,” Galavis explained. “Housing supply continues to be at the lowest it has been in many years even with increased active housing inventory. There is still not enough housing to meet the needs of the buyers looking to purchase in the area.”

NEFAR’s market reports are available at nefar.com.

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