Northeast Florida Housing Market Experiences Mixed Trends in November
Jacksonville, FL – The housing market in Northeast Florida saw a slight rise in the median price of single-family homes in November, according to a recent report by the Northeast Florida Association of Realtors (NEFAR). The median price increased by 0.5% to reach $392,000, marking the fourth consecutive month of price growth.
While prices are on the rise, the overall picture of the housing market appears more complicated. Data indicates that the active inventory of homes is also increasing. This month, the number of homes on the market climbed to 7,645, reflecting a 7.5% rise from October and a significant 67% increase compared to a year ago, when only 4,578 homes were listed. The market now holds an inventory that can last 5.5 months, a rise from 4.5 months in October.
Declining Sales Volume Raises Concerns
Despite the increase in home prices, the number of sales has been declining. In November, 1,392 closed sales were reported, which is a significant 12.3% decrease from October and a 4.1% drop from a year ago. This continues a downward trend for the sixth consecutive month. The median days on the market also rose, increasing to 53 days compared to 44 days last year.
NEFAR President Rory Dubin noted that the real estate market typically slows down in the months leading into the holiday season. “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.
Affordability Index Worsens
Another concerning development is the Home Affordability Index, which fell to 66 in November from 69 in October. This index assesses the ability of an average family to qualify for a mortgage based on median home prices, current interest rates, and median income. A score of 100 means that a typical family has just enough income to purchase a median-priced home. Lower scores indicate reduced affordability.
Interest rates remain a major concern for potential buyers. As of December 12, the U.S. average for a 30-year fixed-rate mortgage was reported at 6.6%, slightly lower than 6.95% a year prior. With rising inventory and declining sales, experts are considering how these factors will influence the market in early 2025.
In-Migration Shift Influences Market
An interesting aspect of the housing market is the influx of new residents. Since September, over 3,900 individuals have relocated to Jacksonville from various cities, including Miami, New York, and Washington, D.C.. The largest group of movers came from Miami, totaling 871 people.
County-by-County Breakdown
The housing situation varies significantly across counties. In Baker County, the median home price dropped by 0.9% to $330,000, with closed sales rising to 14. Meanwhile, Clay County saw a 7% increase in the median price to $377,500. In contrast, Duval County experienced a 2.2% decrease in price, bringing the median to $326,000.
Conclusion
As the Northeast Florida housing market heads towards the end of the year, it faces a mix of rising prices, increased inventory, and declining sales volumes. With an uncertain interest rate environment, stakeholders will be closely watching how these trends develop into the new year.
