Higher mortgage rates impact summer selling season 

Higher mortgage rates impact summer selling season 

For Immediate Release 

JACKSONVILLE, Fla., May 10, 2023 – Mortgage increases appear to be having a big impact as the Northeast Florida housing market heads into the busy summer selling season.  

Closed sales, pending sales, and new listings dropped in April, indicating that many homeowners who hold mortgages with low interest rates have decided to stay put, wait, and see what the future holds as far as mortgage rates go. Meanwhile buyers have been dismayed to discover that, although they may have a better selection of single-family homes on the market due to increased inventory, prices were also slightly higher in April. 

“Just like the seasons the market has changed,” said 2023 President Diana Galavis. “The fluctuating interest rate has put some buyers and sellers on pause, however, there are still buyers who are choosing homeownership. This is reflected in a low month’s supply of inventory, which has contributed to moving the median sales price up.” 

 
For Northeast Florida’s six counties, the median price of single-family residences inched up 2.8% to $370,000 with the price per square foot rising by $4 to $202 from March to April. Meanwhile, closed sales plummeted 19.2% to 1,757; pending sales fell 3.6% to 2,097, and new listings decreased 1% to 2,950. Active inventory rose 5.5% to 4,667 and the median days on the market quickened by 10% to 36 days. 

In April, single-family homes became slightly less affordable with the Home Affordability Index dropping from 76 the month before to 74.  The Housing Affordability Index measures housing affordability for the region. In other words, it measures whether a typical family earns enough to qualify for a mortgage on a typical home, based on current interest rates, median income, and median home prices.  A higher number means greater affordability. An index value of 100 means that the average family has exactly enough income to qualify for a mortgage.  

“Factors such as inflation, rising interest rates, and the cost of goods and services play a role in home affordability,” Galavis said.  

 
 
“REALTORS^® are committed to fair and equal housing opportunities for all. There are many steps in the process of buying, selling, and investing in real estate and using a REALTOR^® is the smart way to get professional help,” she said. 

Northeast Florida by County 

In Duval County, the April 2023 median price of single-family housing was $325,000, a slight 3.2% increase from March 2023 when it registered $320,000. The median days on the market in March was 32, a 15.8% drop over March. Month-to-month, closed sales tumbled 22.1% to 890, pending sales fell 7.3% 1,029, and new listings decreased 2.8% to 1,432. Active inventory for the county rose to a 2.3-month supply – 2,087 homes, which is an increase of 4.5% from March and a 93.2% hike from the year before. In April, the home affordability index showed housing was becoming slightly less affordable by registering at 84, a 2.3% drop from the month before. 

In Clay County, the April 2023 median price of single-family homes decreased slightly, 1%, to $336.743. The median days on the market were 48, an increase of 4.3%. Month-to-month, closed sales slid 18.3% to 276, pending sales inched down 1.6% to 314, and new listings increased 7% to 443.  Active inventory for the county was 707 homes, rising 8.6% from March 2023 and showed a 2.6-month supply. The affordability index registered at 80.5, a half a percentage point increase from the previous month.  

In St. Johns County, April 2023 median prices pretty much remained stable at $555,000 for single-family homes.  The median days on the market were 38, a 5.6% increase from the month before. Month-to-month, closed sales fell 8.6% to 426, pending sales dropped 2.3% to 520, and new listings decreased 4.7% to 751. Active inventory rose to 1,346 homes, an increase of 8.5% from March 2023, and 3.2-month supply. The affordability index remained the same at 49, demonstrating that St. Johns County continues to be the most expensive area to live in the region.  

In Putnam County, the April 2023 median price of single-family homes was $228,000, a 6.9% drop from March 2023.  The median days on the market in March were 44, 40.5% less than March Month-to-month, closed sales slid down 29.3% to 41, pending sales dropped 11.9% to 52 and new listings increased 13.6% to 92. There was a 5.6% decline in active inventory to 168 homes. Putnam County’s home affordability index registered at 119, a 7.2% increase from the month before indicating that the county became slightly less expensive to remain the most affordable place to live in the region. 

In Nassau County, the April 2023 median price of single-family homes was $408,000, a 2.4% increase from March 2023. There was a 28.5% decrease in the median days on the market to 34. Month-to-month, closed sales slid downward 28.5% to 103, pending sales catapulted upwards 23.2% to 154, and new listings climbed 3.1% to 199. Active inventory increased a smidgeon to 315 homes, a 3.1-months’ supply. The Home Affordability Index registered 67, 2.2% less than in March 2023. 

In Baker County, the April 2023 median price of single-family homes inched upward slightly to $285,000. The median number of days on the market in March climbed to 56, a 20.7% increase from the month before. Month to month, closed sales fell 19.2% to 21, pending sales dropped 9.7% to 28, and new listings rose 6.5% to 33. Active inventory remained the same in April at 44 homes, a 2.1-month supply. The affordability index registered at 95, remaining one point less than the previous month. 

-30- 

The Northeast Florida Association of Realtors (NEFAR,) serves as the voice of real estate in Northeast Florida. It is the region’s largest professional association, representing more than 12,000 members who work in all facets of the real estate industry including residential and commercial sales and property management. It serves the public through support of community affairs programs and seeks to protect private property rights. The region’s multiple listing service, realMLS, is a wholly owned subsidiary of NEFAR. NEFAR is headquartered in Jacksonville, with satellite Service Centers in Orange Park, Jacksonville Beach, and Palatka.