Davidson Realty, Inc.

Northeast Florida Market Stats | October 2023

November 21, 2023

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Posted by in Northeast Florida Market Trends

“Give thanks not just on Thanksgiving Day, but every day of your life. Appreciate and never take for granted all that you have.” Catherine Pulsifier

I am so thankful for my family and friends and for all the kindness shown to me and my family this year.

 

The Northeast Florida Association of Realtors market stats for October show the median sales price continues to be stable. The median sales price of $350,550 is up 0.2% from $350,000 in September.

 

There were 2,047 closed sales in Northeast Florida, which is down 17.1% from the previous year and 9.3% from September. According to Lawrence Yun, National Association of Realtors (NAR) Chief Economist, home sales nationally will likely decline by 18% in 2023 after the 17% drop last year in 2022.

 

A lot of reasons for the declines are the volatility of mortgage interest rates. It is difficult for consumers to make decisions when the rates are going up and down so drastically. For example, if you’re contemplating selling your home and planning to buy a replacement home at a 7% interest rate, if interest rates quickly rise to 8%, you may no longer be able to qualify for the mortgage. This could be a potential problem if you have accepted a contract on your existing home. Logan Mohtashami discussed this today on Housing Wire and emphasized we need some stability with interest rates to have a functioning market.

 

Some reasons sellers aren’t selling right now in addition to the interest rates are:

  • Possible capital gains tax if they have had significant appreciation.
  • Potential increase in property taxes (if moving within Florida, we have portability of our tax savings).
  • High costs to improve their home for sale, as the cost of building materials have continued to rise.
  • Potential insurance increases

 

Our inventory has been increasing, even though it is still very low. We have 7,114 active listings which is up 8.4% from September. We have a 3.5 months supply of inventory which is up from 2.9 months in September. A healthy market has 5 to 6 months supply.

 

Lawrence Yun has been speaking at the NAR convention this week. He is forecasting existing homes sales will rise by 15% next year and mortgage rates will be between 6-7% by spring 2024. That is very good news from a very trusted source.

 

To summarize, prices have been stable, inventory of available properties has increased, and closings are down compared to previous periods.

 

If we can be of any assistance with any of your real estate needs, please let us know. Wishing you and your family a wonderful Thanksgiving holiday!

 

Sincerely,

 

Sharon P. Davidson
President

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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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