Davidson Realty, Inc.

Northeast Florida Market Update | June 2023

July 24, 2023

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Posted by in News, Northeast Florida Market Trends

“Discipline is choosing between what you want now and what you want most.” Abraham Lincoln

 

 

 

The Northeast Florida Association of Realtors market stats continues to present a unique real estate market in 2023. The median sales price of $360,000 is up slightly (1.4%) from May and down 1.6% from last year. The prices bottomed out at $330,705 in January 2023 and have been steadily rising since. Prices are dictated by supply and demand. Our supply is low, and demand continues to be steady.

 

You may have seen the article in the Daily Record by Gregg Cohen with JWB Companies. He listed several factors that indicate real estate in Northeast Florida is not likely to crash.

 

  • Low inventory levels
  • Surging population growth
  • Strong job market
  • High equity levels in existing homes

 

Brian Buffini also talked about high equity levels in his recent Bold Predictions. He said nationally 39% of homes are owned free and clear, 29% have 50% or more equity in their home which leaves 32% of owners with less than 50% equity. These stats don’t look anything like the Great recession.

 

There were 2,746 closed sales in June 2023 locally which is down 2.7% from May. Pending sales of 2,465 were down 11.1% from May. NAR Chief Economist Lawrence Yun said “Despite the sluggish pending contract signings, the housing market is resilient, with approximately three offers for each listing. Still, the lack of housing inventory continues to prevent housing demand from being fully realized.”

 

It is important to note that as long as mortgage interest rates stay closer to 7%, sales and closings will suffer. If many of the predictions come true that interest rates will be below 6% by the end of the year, I think many sellers will list their homes and more buyers will be in the market.

 

The active inventory of 6,308 homes is up 55.9% over last year and 15.9% over May; however, we still have only 2.3 months of supply. Lawrence Yun said nationally we have roughly half the level of inventory of 2019.

 

Prices continue to be stable; the number of transactions is lower than past years, available inventory is still low. The market has held up pretty well despite mortgage interest rates doubling.

 

Please let us know if we can help you with any real estate needs and thank you for your support!

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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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