Northeast Florida Real Estate Market Shows Mixed Trends in November
Jacksonville, FL – The real estate market in Northeast Florida has seen a rise in home prices while experiencing a slowdown in sales volume, according to a recent report from the Northeast Florida Association of Realtors (NEFAR). In November, the median price for a single-family home increased by 0.5% to reach $392,000. This marks the fourth consecutive month of price growth in the region, which includes Duval, Baker, Clay, Nassau, Putnam, and St. Johns counties.
While prices continue to rise, the number of homes available for sale has also increased significantly. The active inventory of homes climbed to 7,645, reflecting a 7.5% increase from October and a substantial 67% rise compared to the same time last year when only 4,578 homes were listed. The market currently has a 5.5-month supply of homes available, up from 4.5 months in October.
Sales Volume Dips Amid Increased Listings
Despite the uptick in home prices and listings, the number of closed sales has decreased significantly. In November, closed sales fell 12.3% from the previous month to 1,392, marking the sixth consecutive month of declining sales. Additionally, closed sales are down 4.1% from last year.
The slowdown in sales could be partially attributed to seasonal trends, as indicated by NEFAR President Rory Dubin. “The market nationally, as well as in Northeast Florida, typically slows in sales volume heading into the holiday cycle from Thanksgiving to year-end,” Dubin stated in a news release dated December 13.
Affordability Index Worsens
The Home Affordability Index also bore bad news, falling to 66 in November, down from 69 in October and September. The index measures whether a typical family earns enough to qualify for a mortgage on a typical home based on current interest rates and median incomes. A higher index number indicates greater affordability, with 100 being the point at which median-income families can afford a median-priced existing home. Currently, the index is substantially below that mark.
The issues in the market may also stem from fluctuating interest rates. As of December 12, the average rate for a 30-year fixed-rate mortgage stood at 6.6%, down from 6.95% a year prior, but rates are expected to remain volatile as we approach 2025.
Increased Influx from Other Cities
Despite the challenges, there is a notable trend of migration into Jacksonville. Since September, approximately 3,908 people have relocated to the city from various parts of the country, including Miami, New York City, and Washington, D.C. The numbers suggest a growing interest in the Northeast Florida market, which may offset some declines in local sales.
County-Specific Insights
Each county in the region shows different trends. For example, in Baker County, the median home price decreased by 0.9% to $330,000, but the number of new listings rose 75% from the previous month. In Clay County, the median price increased 7% to $377,500, while Duval County saw a 2.2% decline in median price to $326,000.
Looking ahead, the market shows both promise and uncertainty. With November’s 735 permits for new construction, the pace remains strong, trailing closely behind the total for all of 2023. Builders in Duval, Clay, Nassau, and St. Johns counties remain active, suggesting that interest in the area continues.
The upcoming months will be critical as we analyze how the market develops alongside national trends, interest rates, and local demands.
