Data from the Northeast Florida Association of Realtors (NEFAR) shows a remarkably slow start to home sales in the first six months of 2023. Sales throughout the region have seen a decline as high as 20% compared to the prior year. Industry professionals are seeing less appetite for all categories of home amidst rising interest rates and stubborn pricing. Median sales price has remained unchanged at $375,000 but sales volume tells a different story.
According to data collected by NEFAR, just over 8,000 residential sales were recorded in the first six months of 2023. As compared to 11,000 transactions during the same period a year prior, negative headwinds amounted to a 27% reduction in sales volume for the region. In addition to interest rates increasing the cost for conventional buyers, interviewed experts attributed some of the negativity to additional factors including uncertainty about the economy, inflation, and changing buyer preferences.
One particular data point that is flashing red is the large increase in the number of days a home remains on the market. Spring 2022 saw the average home sell in a fairly quick 14 days on the market. 2023 home listings are averaging a whopping 40 days on market before a sale, with 66% more homes selling for less than their original list price. It is clear that potential buyers are being more cautious and sellers are carrying unwanted inventory for longer durations. Sellers in today’s real estate market looking for top dollar will have to prepare themselves for a lengthy selling process, potential price cuts, and less negotiation power.
Obi Dorsey commented: “In the realm of Jacksonville real estate, the market’s first half of 2023 unfolded like a leisurely stroll rather than a sprint. Sellers found themselves in a waiting game, while buyers approached with caution. As interest rates and uncertainties played a role in this market’s tempo, adaptability became the key to finding harmony amidst the shifting rhythms of the housing landscape. We are still bullish on Jacksonville and are still buying.” Mr. Dorsey is the CEO of Obi Buys, a Jacksonville-based cash home buying company that has purchased nearly 2,000 homes in Northeast Florida over nine years in business.
A silver lining in the data can be found in an often overlooked metric: Price per square foot.
During 2023’s considerable drop in sales volume, the price per square foot for properties in Northeast Florida has shown a modest increase from $192 to $201. Patient sellers are still getting an impressive price as compared to five or ten years ago which bodes well for the region.
For the remainder of the year, homeowners and investors alike can expect these trends to continue in the wake of continued tightening monetary policy at the federal level and minimal interest in residential mortgages from banks of all sizes. Motivated sellers who wish to avoid months of list time will need to be competitive with their pricing and give consideration to alternative offers such as cash buyers, seller financing, or FHA loans.
Media Contact
Company Name: NEFAR
Contact Person: Marcia Hodgson
Email: Send Email
Country: United States
Website: https://devonsprague.com/