JACKSONVILLE, Fla., July 8, 2024 – It appears that the Northeast Florida housing market is slowing to what is expected in a rising interest rate environment.
Although the median price of single-family homes rose 1.3% over the region to $405,000, other factors indicate that the market has stabilized and that interest rates that hover around 7% may be finally catching up with buyers.
Throughout the region, housing inventory increased more than 31% to 7,764 homes, a 4.1-month supply and the highest since January 2019.
And other market statistics are not what we usually see in the month of June. Closed sales usually go up, not down, yet in Northeast Florida for single-family homes closed sales declined nearly 11% to 1,907. Similarly, pending sales usually go up and not down in June, yet pending sales last month plummeted 35% to 1,261 homes.
“The Northeast Florida real estate market is back to a stabilized level between sellers and buyers,” said 2024 NEFAR President Rory Dubin. “Days on market climbed by almost 2 weeks from last month to 39 days, pending sales dropped significantly as well as new listings. Months of supply is now up to 4 months as active inventory climbed towards 7,800 listings,” he continued.
Meanwhile, the region’s Home Affordability Index remained the same as in May with June registering at 63.
The Home 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. This index measures affordability factors for all homebuyers making a 20% downpayment. An index of 100 is defined as the point where a median-income family has the exact amount of income needed to purchase a median-priced existing home. An index value over 100 means that the family has
more than enough income, while a value below 100 means that a family doesn’t have enough income to qualify for a mortgage loan.
“With interest rates averaging at or above 7% today and the election year upon us, it is more important than ever for both sellers and buyers to use a trusted REALTOR from the Northeast Florida Association of REALTORS to gain the most accurate and recent information to navigate the buying or selling process to make smart decisions,” Dubin said.
Northeast Florida by County
In Duval County, the June 2024 median price of single-family housing was $340,900, a slight decrease of 1.2% from the month before. The median number of days on the market in June was 34, more than double from May 2024. Month-to-month closed sales fell 12.6 % to 913, pending sales plummeted 36.6% to 612, and new listings dropped 2% to 1,709 homes. Active inventory for the county climbed 21.7% to 3,533 homes, a 3.9-month supply. In May, the Home Affordability Index inched up to 75.
In Clay County, the June 2024 median price of single-family homes barely rose half a percentage point to $360.000. The median number of days on the market climbed 12.8% to 44. Month-to-month, closed sales decreased 2.7% to 257, pending sales plummeted 33.3% to 174, and new listings dropped 1.5% to 455. Active inventory for the county rose to 1,082 homes, a 20.8% increase from May 2024 and showed 4.2-month supply. The Home Affordability Index inched up 1.4% to 71.
In St. Johns County, June 2024 median prices increased 2.6% to $579.900 for single-family homes. The median days on the market increased 20.2% to 51. Month-to-month, closed sales dropped 9.6% to 573, pending sales catapulted down 39.2% to 333, and new listings fell 2.5% to 835. Active inventory climbed 13% to 2,298 homes, a 4-month supply. The Home Affordability Index dropped to 44, indicating that it is very expensive to live in St. Johns County.
In Putnam County, the June 2024 median price of single-family homes rose to $271,000, a 4.2% increase from May 2024. A median of 21 days on the market reflected a 27.6% drop from the month before. Month-to-month, closed sales inched up 2.7% to 38, pending sales dropped 2.4% to 40 and new listings decreased 9.6% to 85. Active inventory also climbed to 261 homes, an 8.3% increase. Putnam County’s Home Affordability Index registered at 95, a 2.1% decrease from the month before indicating that prices in the county are becoming slightly more expensive. With a Home Affordability Index registering close to 100, Putnam County remains by far the most affordable place to live in the region.
In Nassau County, the June 2024 median price of single-family homes was $475,000, a 13.4% increase from May 2024. In June, the median days on the market remained the same as May at 48. Month-to-month, closed sales fell 18.7 % to 113, pending sales dropped 23.6% to 97, and new listings fell 11.4% to 187. Active inventory rose 7.3% to 528 homes, 4.7-months’ supply. The Home Affordability Index registered 54, a drop of 10% from the month before.
In Baker County, the June 2024 median price of single-family homes jumped to $400,000, a 32.2% increase. The median number of days on the market in June climbed to 56, a 40% increase from the month before. Month to month, closed sales dropped 27.8% to 13, pending sales plummeted 54.5% to 5, and new listings fell 5.9% to 16. Active inventory increased 8.8% to 62 homes, a 4.8-month supply. The Home Affordability Index registered at 64, a decrease of 23.4% from the previous month.
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.
