jacksonville, florida – The hot housing market in Northeast Florida last year is a thing of the past.
Real estate broker Redfin released new data this week shows Jacksonville home purchases fell at a higher rate last month than anywhere else in the country.
About 30% of Jacksonville’s purchase contracts were canceled in October. It was the second month in a row that Jacksonville had the most in the nation.
In northeastern Florida last year, the pandemic caused home prices to soar, thanks to low mortgage rates and thousands of people flooding into the state. But homebuy cancellations and other indicators show that’s no longer the case.
Jacksonville saw its biggest year-over-year increase in its share of homes for sale last month as prices fell, according to Redfin data.
Northeast Florida Real Estate Association (NEFAR) president Mark Rosener said the failed deals were largely related to new home construction and higher mortgage rates.
“Many of these people signed their contracts nine months ago, a year ago when current interest rates are very different than they were then. said Rosener.
Overall, Rosener said the last few months have seen a slowdown in the local housing market.
“So one of the cautions I’ve been doing over the past few months is comparing this year’s stats to 2021 and 2020. It’s a very crazy market and I knew it wouldn’t hold up. he said.
Rosener said the housing market is starting to look like it’s back to 2019 when things were more “normal.” He said it would be good for buyers and sellers.
“Today, real estate has been in the market for a little longer. “From the seller’s point of view, it’s less stressful. From the seller’s point of view, the multiple offer situation is stressful.”
Staring NEFAR data for six counties in northeast Floridathe median single-family home sales price was more than $383,000, 14.5% higher than last October, but homes are becoming more affordable for buyers.
Rosener said it was still a “seller’s market” but that the situation could stabilize by the end of next year.
“Normally, property economists would say that five to six months of supply is a balanced market. Neither a seller’s market nor a buyer’s market. It shows we’re still in a seller’s market, but it’s all relative, and this seller’s market is very different from April, March, February, and all of last year,” he said. said. “Probably by the end of 2023, we will have a balanced market.”
Inflation is starting to cool and Redfin said buyers could return to the market if the trend continues.
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