The housing market in Northeast Florida shows signs of stabilization
Writer: Pablo Marquez
August 2024 — According to the latest report that was released by the Northeast Florida Association of Realtors (NEFAR), the housing market in Northeast Florida shows signs of stabilization towards a balanced market for single-family homes in the area. NEFAR’s monthly report measures different statistics to determine the current state of the real estate market in the six counties that form Northeast Florida (Baker, Clay, Duval, Nassau, Putnam, St. Johns).
The July 2024 Market Review report showed that the median sales price for single-family residences across the six counties of Northeast Florida in July was $398,970, depicting a slight -0.4% change from the previous month. Meanwhile, there were 1,868 closed single-family home sales in the month of July, showing a small decrease of -4.8% in comparison to the month of June. At the same time, the median days on market was 42, portraying a 20% monthly increase. The list price received was 97.4%, down by 0.4%, and the closed over list price was 12.3%, down by 10.2%. The home affordability index in the region was up by 1.6% at 65. The median price in dollars per square foot was $215, down 0.9% on the year but up 2.4% from July 2023. Overall, there were 1,387 pending sales and 3,318 new listings, with a total active inventory of 7,897 and 4.2 months worth of inventory supply.
“July statistics showed a continued stabilization of the real estate market in Northeast Florida towards a traditional balanced marketplace. Despite a worsening economy and high inflation, median prices were down slightly, and the Home Affordability Index was up. Days on market are longer, and inventory of homes to purchase is higher,” said Rory Dubin, president of the Northeast Florida Association of Realtors, as cited by the Jacksonville Daily Record. For additional context, it is important to note that the Housing Affordability Index, as defined by the National Association of Realtors, ‘measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.’
Although the median home price in Northeast Florida reached an all-time high at $400,203 in May, there are indicators that the region’s housing market seems to be making a return to a more conventional state. There are currently more choices for buyers, even though mortgage rates still remain high across the country, discouraging potential buyers. Prices seem to have peaked towards the end of 2023 and have made a slow but steady recovery in 2024, but they have not fallen as quickly as most buyers in the market would have preferred.
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The housing market in mid 2024 Northeast Florida exhibits a balanced environment between buyers and sellers, guaranteeing stability and fair bidding prices. Jacksonville still has a relatively affordable housing market, especially if we compare it to other major metropolitan areas in the Sunshine State, such as Miami, Orlando, or Tampa. Aside from homeownership, Jacksonville also provides a vibrant rental market that is also more affordable than other major cities in Florida. Overall, the housing market in Jacksonville and Northeast Florida offers an affordable and budget-friendly landscape with plenty of variety.
Jacksonville has consistently ranked in the top 10% of cities in the United States for home appreciation over the last decade, meaning that the prices of homes in Northeast Florida have been climbing steadily. Future predictions by experts claim that this trend will continue. In fact, home prices in Jacksonville have doubled in less than a decade, faster than most metropolitan areas in the country. At the same time, however, it is also important to note that the selling market for houses in Jacksonville is slowing down. Homes are staying on the market longer in the region, landing Jacksonville in the top ten slowest-selling housing markets in the country.