Although sellers remained firmly in the driver’s seat as the first quarter of 2022 came to an end in March, several factors point toward a more moderate and stabilizing real estate market in Northeast Florida.
The sellers’ market continues to be buoyed up by a restricted active inventory of single-family homes, condominiums and townhouses on the First Coast. A combined total of 2,676 homes were available at the end of March, 7.5% fewer than in February.
“The upside is the number of new listings is 3,144, up 14% in March compared to February,” said Mark Rosener, president of the Northeast Florida Association of Realtors. “This is in line with a normal uptick of new listings hitting the market in the spring season. This trend should continue over the next several months, which will make it a little easier for buyers to find a home that meets their needs.”
Rosener said the additional inventory may be due to older millennials seeking to improve on their residences.
“There are signs that older millennials are looking to upgrade or upsize from their current homes, which is creating some additional inventory in first-time homebuyer price ranges,” he said. “However, these listings are quickly absorbed by the younger millennials who are looking to purchase a home for the first time.”
The combined median sales price of single-family homes, townhouses and condos in Northeast Florida in March was $350,000 with single-family homes alone climbing to $370,050, a 4.7% increase. Meanwhile, the median sales price of single-family houses, condos and townhomes combined was $350,000, a 4.5% increase over February and a 25% increase from last year at this time.
“The median price of single-family houses, condos and townhomes continues to move upward,” Rosener said. “The moderate month-over-month increase is in line with the median price trend since November of 2021 and is more evidence that pricing in our market is beginning to return to a more stabilized level. Increasing mortgage interest rates are now putting pressure on the home affordability index that dipped to 92 over the region in March, he said.
Sales remained brisk with only 15 days on the market as the median, a 7% increase from this time last year.
Homes that closed or are under contract pending a closing are in line with historic seasonal trends with closed sales up 22.5% over closings in February and pending sales up 4.3%, Rosener said.
“When compared to March of 2022, both closed and pending sales are down considerably as the first quarter of 2021 was inflated by pent up demand created by the COVID pandemic,” he said. “All these factors continue to point to a slow movement toward a more moderate and stabilizing real estate market in Northeast Florida.”
In St. Johns County, the March median price of single-family homes leapt to $558,700, a 15.9% increase the month before. Active inventory showed a 7.2% drop from February to 492 homes, slightly less than a one-month supply. All sellers — 101.3% — received their asking price with 41.7% of homes closing over list price. The median days on the market was 17, and 58 was the home affordability index, a 13.4% decline from when it registered at 67 in February.
In Duval County, the March median price of single-family housing was $330,000, up 6.5% since February 2022. The median days on the market was 15, with 41.8% of sales closing above asking price and 100.7% of sellers receiving list price.
Active inventory for the county was 1,184 homes, a decrease of 10.5% from last month and slightly less than a one-month supply. The Home Affordability Index registered at 98, down 5.8% from February.