NorthEast Florida Market Update | March 2024

Spring is HERE! Let's take a look at the market trends to keep you informed and empowered in your real estate journey:

February brought a refreshing rebound after a slow January, signaling the market's transition into Spring growth mode. Many disappointing stats from the previous month have bounced back, paving the way for exciting opportunities ahead.

In February, we witnessed a significant uptick in the number of homes hitting the market, setting the stage for a refreshing change in both short- and long-term trends. This surge in available inventory presents a golden opportunity for prospective buyers, especially with the bustling Summer buying season approaching. Buyers, rejoice – more options are on the horizon!

Months of supply dropped significantly to 4, indicating heightened market activity as sales picked up. This critical indicator sets the stage for potential price increases, as historically, prices tend to rise year-over-year when months of supply are under 8. The decline in interest rates since October 2023 has injected energy into the market, with buyers adjusting to the current rates and showing increased interest in home purchases.

Demand Dynamics and Sales Projection:

Comparing the current demand metrics to the same period last year reveals a ~24% decline. Factors like interest rate fluctuations and inventory shortages have contributed to this dip in demand. However, all signs point to a rebound in home sales as we progress further into the vibrant seasons of Spring and Summer. The market is primed for a resurgence, presenting a promising outlook for buyers and sellers alike.

Continued increases in mortgage rates have cast a shadow over the market landscape, influencing buyer decisions and sales dynamics. While rates are currently below the high point set last October, the trend of rising rates has re-emerged, potentially shaping future market movements. It's essential for buyers to consider the implications of waiting, as delays may result in higher prices and rates down the line.

Now, let's delve into some fascinating details about homes sold in February:

Pricing Power:

Buyers are out there looking for homes more than ever. Sales were up a whopping 35% from last month, and it's taking less time to sell houses – down by 4%. This surge in activity underscores the pent-up demand in the market following a slow January. Inventory also saw an 11% increase, providing buyers with more options compared to the same period last year. The rise in median prices reflects the trend of properties selling at higher price points, indicating a robust market environment.

February Sales Snapshot:

- 64% of sales fell within the $200k - $500k price range, showing a slight increase from the previous month's 63%.

- There were 93 sales above $1M, a significant rise from 70 sales in the prior month.

- Cash sales accounted for 28% of transactions, down slightly from 29% previously.

- The percentage of properties sold at their original list price increased to 95% from 94%.

- 38% of properties had concessions noted, up from 36% in the previous month.

- The average seller concession noted was $9.3k, up from $9.1k.

- The concession for new construction properties averaged $15.4k, compared to $14.9k previously.

- Existing home concessions averaged $7.4k, increased from $7k.

- New construction properties constituted 24% of sales, down slightly from 26% in the prior month.

Now, let's take a closer look at the start of March:

Market Snapshot:

Housing inventory stands at four months, reflecting a decline from 4.91 months recorded in January. Approximately 55% of listings are priced between $200k and $500k, with new constructions comprising around a quarter of available homes. Recent data reveals a 10% decrease, translating to 763 fewer homes on the market. Price trends indicate an overall uptick, except for the $300k bracket, which remained stable. Notably, there was a significant decrease in listings above $3 million, while the $1 million+ category observed a rising trend.

Listing Performance:

51.2% of active listings are classified as stale, reflecting a noticeable drop from 55.4% in the previous month. This decline suggests improved listing activity and faster turnover in the market. An estimated 3,284 listings are potentially priced "right," presenting opportunities for buyers and sellers to engage in favorable transactions. The majority of new listings are less than a month old, indicating a fresh influx of available properties.

We are here to support you whether you're considering buying or selling. Our role is to navigate the market landscape seamlessly, leveraging our expertise and commitment to stay informed. 

Don't hesitate to reach out if you have any questions or if you're ready to explore the exciting opportunities in today's dynamic market. Together, we can navigate these trends and secure the best outcomes for your real estate endeavors.

We look forward to partnering with you and helping you achieve your real estate goals in 2024!