Everyone seems to be talking about the real estate market and speculation is high about where the market is headed in 2023.
During the COVID market from 2020 through early 2022, the housing market seemed to explode. People were spending more time than ever on their homes, and quickly realized that their homes didn’t meet their current needs.
Working from home became a reality; suddenly every buyer needed a home office.
Faced with the unknown job market, families also looked to downsize to secure affordability. This saturated the market with buyers, causing increased sales prices and low inventory.
From the seller’s perspective, things were positive. The number of days on the market was very low. Buyers were plentiful and paid over the listing price to secure the winning bid. This resulted in soaring property values.
With the COVID market behind us, buyers and sellers are worried about where the housing market is headed.
The market we see today has adjusted and is a steady, strong market. According to the Northeast Florida Association of Realtors, last month there were 1,583 closings; this is down 38.4% from December 2021.
However, while the number of closings dropped, comparatively from December 2021 to December 2022, year-over-year the pricing has managed to maintain positive growth with the median price growing by 5.7% to $370,000.
This is indicative of the market leveling out, the previous period’s influx of buyers correcting itself and stabilizing property values.
NEFAR research shows that sales prices did slip from the previous month by 1.7%. However, this is likely the result of decreased demand in direct correlation to increased mortgage rates, which are already showing improvement. As the mortgage rates become more favorable, the borrower’s buying power will increase and sales prices will rise.
There are currently 5,179 active listings in Northeast Florida, which is an increase of 153.7% from the previous year, according to NEFAR.
Do not be discouraged. It is still a great time to buy and sell in North Florida.
Sonny Downey Is president and a broker at United Real Estate Gallery. He can be reached at [email protected]
