Despite the many challenges, our Northe East Florida market has shown surprising strength, so if you’re wondering whether now is the right time to buy or sell, let’s take a look at what’s happening.
Florida Housing Market 2024: An Overview
In June, the slowdown in inventory growth was primarily due to the weakest year-over-year increase in new listings seen all year. While new listings of single-family homes have risen over 16% year-to-date, they were up only 6% in June compared to last year. Similarly, new listings of townhouses and condos have increased over 19% year-to-date but saw less than a 5% rise in June.
Given the current inventory levels, the market is much more balanced than a year ago, resulting in relatively stagnant home price growth. The median price for closed sales of single-family homes in Florida reached $427,000, a modest 1.7% increase from last year. For townhouses and condos, the median sale price was $324,900, just $100 less than last year’s figure. Closed sales were down in June; single-family home sales fell by over 11%, and townhouses and condos were down by over 20%. However, pending inventory suggests we might see a rebound in the coming months.
Northeast Florida Market Insights
Looking at Northeast Florida, which consists of Duval, St. Johns, Nassau, and Clay Counties. Active inventory for single-family homes remains above last year’s levels, indicating a potential move toward a balanced market. However, the growth rate of new listings has slowed down, so we’ll need to keep an eye on this trend. St Johns County is currently at 4 months of inventory, so we are not quite there, and many buyers in this county are still struggling to find good inventory.
In the first half, we did see sales dip slightly and inventory rebound but saw home prices continue to rise. The median home price has risen by 5% compared to last June, nearing the $500,000 mark. In St. Johns County, we saw an increase of 3.7% to $570,000, which is 2% higher than the median sale price in Florida. But don’t worry, there are still plenty of affordable options in NE Florida. About 65% of monthly sales fell within the $200,000 to $500,000 range. Sellers are also working with buyers, offering closing cost credits and interest rate assistance to create win-win deals.
Compared to last year, the number of homes for sale is up by 35%, and closings are down by 15%. While this might seem concerning, many of the homes on the market have become stale and likely priced too high, so we see this as a sign of recovery from the near-sell-out conditions we saw a couple of years ago. In St. Johns County, inventory remains low at around 4 months, which means prices are staying stable, and we did see our closed sales in the county increase by 6.6% this June compared to last year.
Interest Rates and Market Dynamics
Interest rates, which had peaked at 8% last October, have now moderated to a more affordable range between 6-7%. This adjustment has eased the initial sticker shock for many buyers, encouraging them to move forward with their home purchases.
One type of housing that continues to be popular is new construction. With builders offering below-market rates and closing cost assistance, many buyers are choosing this route. This does put some pressure on existing home sales near new communities, but it also means buyers have great options to choose from.
Local Market Nuances
Remember, every market is local, so even though St. Johns County as a whole saw appreciation, areas within St. Johns County have seen some declines. Let me know if you’d like to learn more about a specific area or neighborhood.
Making the Right Move
If you are considering buying or selling a home, now may or may not be the right time. Every buyer and seller has unique goals, which is why we’re here to provide guidance tailored to your needs. As we head into the fall, it’s the perfect time to set up a strategy session with our team if you’re planning a real estate move.
If you have any questions or need personalized advice, don’t hesitate to contact us directly. Your dream home in Northeast Florida is just a call away!