The Real Estate Market in Northeast Florida: 2023

As the new year is fully underway and families are looking forward to what life changes they want to see happen in 2023, understanding where the real estate market lies is an important component to any decisions to buy or sell property this year. It’s been a little while since we have given you a full market rundown on the blog, so that is exactly what we are doing in this post. Whether you are a buyer or a seller in this market, having the knowledge about current market conditions is crucial for decision making. We are pulling some key stats to share in this post from the Northeast Florida region to help you stay informed about what exactly is going on with the local real estate market.

Average Days on Market
Among the hottest statistics to talk about are the average days on market. Northeast Florida as a whole is seeing a 54 day average as of January 2023.* This is a 157.1% increase from January 2022 and a 12.5% increase from December 2022. Longer days on market mean that buyers have more opportunities to browse properties without feeling the pressure to jump on a home the day it goes live. For sellers, it means that you could expect your home to sit on the market longer than it would have before. However, it is important to mention that on a micro-level, the pricing of any one home can also greatly impact how quickly a property will move on the market.

Homes Closed Over List Price
Another interesting metric to point out is the percentage of homes closing over list price. As of January 2023, 8.8% of homes in NE Florida are closing over list price. Back in January of 2022, this metric sat at 34.9%. Over the last year this stat hit its peak in May of 2022 when 45.1% of properties were closing over their list price. Why exactly is this happening? We can’t say for sure, but two possible reasons are the decrease in buyer competition on properties and sellers pricing their homes above their true current value. Less competition amongst buyers can mean less “bidding wars” and buyers who are only willing to pay a fair price on a home because they have other options. On the seller side, some continue to hold on to the hopes of selling their home at a price they would have seen at the peak of the seller’s market last year. The reality is that we are no longer in that market, and most homes are not worth as much right now, so many buyers are making offers under list price on the homes on the market that are simply overpriced.

Housing Market Inventory
Lastly, let’s take a look at the amount of inventory on the market. Current statistics show that in January of this year there were 5,740 properties active on the market, leading to 3.9 months supply of inventory. In January of 2022, there were only 2,258 active properties and 1.0 month supply of inventory. Again this is showing us that the market is offering more options to buyers. Not only are they finding themselves with more time before submitting an offer, but buyers are also presented with many more options than they were before. For many buyers there is less pressure to scoop up a specific home as quickly as possible because they have more confidence than before that another property they like will come along relatively soon. 

A Note for Buyers & Sellers
Sellers, you may look at these numbers and the current interest rates and feel fearful about listing your home. Keep in mind that the market we were in last year was not normal, and no one can guarantee when, if ever, we will return to a market like that. We encourage you to take the time to crunch the numbers and determine based on your specific situation whether it is the right time to sell. If you need help doing that, one of our market specialists would be happy to assist you. You can get connected with one by emailing info@theroccogroup.com.

Buyers, although the higher interest rates can be a concern, there are also a lot of benefits in this market for you. More opportunity to browse multiple homes and taking more time to put in an offer are just two of the benefits. Perhaps the biggest positive to this market is that prices are finally going back down with fewer homes closing over list price. Like sellers, we encourage you as well to work out the math for your individual situation. Consider all the factors and look at the total monthly payment to see if buying makes sense for you right now. We know this can be overwhelming and we would be happy to help in any way we can.

Real estate is far from a completely steady market, but it’s part of what makes it such a great investment when you can use the market to your advantage. We hope this post helped to give you some insight into what our local market is doing here in NE Florida. There are still good opportunities to buy, sell, and invest during this time, so whatever your goals are this year, we hope you find the deals out there to help you accomplish them!

Statistics Provided By:
Source: Northeast Florida Association of REALTORS.

*This reference and all following to statistics include single family homes, townhomes, and condos.

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