NorthEast Florida Market Update | January 2024

Let's wrap up 2023 with a roundup of some insightful details about our real estate market. The year is complete, and it ended on a relatively positive note. Mortgage rates continued their decline as closings rebounded, setting the stage for an action-packed start in 2024. Here's what you need to know:

Limited Inventory:

Inventory remained constrained, falling 5% compared to last month, and active listings were 10% lower than in December of last year. This highlights the shortage of homes for sale in our market. But wait for it—a new crop of listings should hit the market in January. Exciting, right?

Strong Market Performance:

Home prices finished the year 6% higher than the same time last year! This impressive increase indicates the market's strength, as real estate in Northeast Florida held up under the pressure of rising rates throughout most of the year.

Days on Market and Pricing Insights:

Days on market crept up, with many homes sitting longer during the holiday season. Also, sellers regained some power due to the uptick in closings and decline in inventory, leaving buyers with fewer choices.

Now, let's dive into some fascinating details about homes sold in December:

Pricing Power:

Did you know that 75% of the sold properties were on the market for less than 2 months? It's crucial! Pricing a property correctly up-front is the key to getting it sold. Homes selling in 60 days got the most Closed Days on Market. If pricing isn’t proper, you might miss out on an extra 5-8% on price and an extra $1-$6k in concessions on average, and with the least concessions. It's essential to get it right from the start.

Sales Insights:

Here's a snapshot of the sales data:

- 62% of sales were between $200k - $500k, although it's down from 64%. Keep an eye on this trend!

- There were 88 sales over $1M, up from 75! Now that's a significant increase!

- Cash sales accounted for 27% of the total, down from 30%. The trend is shifting.

- The percentage of properties sold to their Original List and List prices remained the same as last month, at 95% and 97%, respectively. Consistency is key!

- The percentage of properties with concessions noted increased to 42% from 37%, with an average seller concession of $10.9k, up from $8.7k. Interesting insights!

- Concessions for new construction properties increased to $18.5k, up from $13k, while for existing homes, it decreased to $7k from $7.4k.

- New construction made up 34% of sales. The new is shining bright!

Even with everything going on, real estate in Northeast Florida is not slowing down. Whether you're ready to buy, sell, or invest, or if you have any questions about the market, I would love to chat and provide you with valuable insights.