Davidson Realty, Inc.

Northeast Florida Market Update | May 2023

June 22, 2023

 | 
Posted by in News

“The army of Israel looked at Goliath through the eyes of man and said he’s too big to beat.  David looked at him through the eyes of God and said he’s too big to miss.” Wally Carter

 

It is all about our perspective.

 

The Northeast Florida Association of Realtors (NEFAR) market review for May shows the median sales price of $354,800 is up 4.4% over April and down 1.4% from May 2022. The predictions of large price decreases in our area haven’t occurred.

 

The active inventory of 5,804 properties is up 4.7% from April. This number includes many new construction homes that are not completed. The months supply of inventory of 2.1 months is down slightly from 2.2 months in April. A balanced market is 5 to 6 months of available inventory.

 

The inventory of resale homes is very low because homeowners who don’t have to sell right now are staying put. The current mortgage interest rates are fluctuating from the mid six percent to high six percent range. Of the current homeowners with a mortgage:

 

23.5% have an interest rate below 3%

62% have an interest rate below 4%

82.4% have an interest rate below 5%

91.8% have an interest rate below 6%

 

Some homeowners considering moving don’t want to take on a 6%-plus mortgage rate and some can’t afford to.

 

Many buyers are using cash to purchase. The percentage of all-cash Florida home sales by metro:

 

Ft. Lauderdale 42.3%

Jacksonville 52.2%

Miami 40.9%

Orlando 35.1%

Tampa 37.7%

West Palm Beach 53.6%

 

There were 2,741 closed sales in the six county area served by NEFAR which is up 10.5% from April. The pending sales of 2,828 were up 2.8% from April.

 

The most important factor that will determine how the remainder of the year goes for real estate sales is the mortgage interest rate. Lawrence Yun, the National Association of Realtors Chief Economist continues to point out that historically 30-year mortgage interest rates are approximately two percent higher than the 10-year treasury which is currently at 3.7%. This would normally mean the 30-year mortgage rate would be around 5.7%. Many macro issues including the bank failures and debt ceiling fight have caused lenders to build in more risk. It will be interesting to see if the rates stabilize.

 

Happy Father’s Day and Independence Day to everyone. Please let us know if we can assist you in any way.

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About the Author
Sherry Davidson
President of Davidson Realty

Since launching Davidson Realty in 1989, Sherry Davidson has built the firm to include nearly 60 agents and exceed $100 million in annual sales. She is known throughout the First Coast as an authority on all things residential real estate, having served on the Board of Directors for Northeast Florida Association of Realtors, Florida Realtors® (a division of the National Association of Realtors), and Builders Care (charitable arm of Northeast Florida Builders Association).

Thanks to Sherry’s leadership, Davidson Realty has been recognized as one of the state’s Best Companies to Work For (Florida Trend Magazine), as well as one of the region's Best Places to Work and 50 Fastest Growing Companies (Jacksonville Business Journal). Get to know Davidson Realty’s talented team of agents by clicking here or call us at (904) 940-5000.

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