JACKSONVILLE, Fla — Many would-be home buyers are holding off on purchasing homes right now and it’s not just because the holiday season is approaching.
Real estate experts say this is our area’s largest seasonal homes sale slowdown in years.
It has to do with a few factors. One, the higher interest rates and two, the value of the homes in our area have gone up.
And in Northeast Florida Association of Realtors’ October market review reveals sales have dropped and more houses have gone on the market.
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“There’s more inventory for people to shop, people are taking their time, and they are purchasing homes that they truly love to be in,” Northeast Florida Association of Realtors President Dianna Galavis said.
Its october market review shows the region’s home sales have dropped about 17 percent since this time last year, while the inventory has shot up.
Galavis says it has to do with interest rates for mortgages.
“The Federal Reserve has raised the rates to help fight inflation,” Galavis said. “Traditionally, we are at the highest rates we’ve been in over a decade.”
Rates are currently at 7.5 percent.
Marty Lambert is from California and looking to buy in Florida, but the current state of the market is delaying the process.
“It’s kind of disappointing, because the house pricing is just crazy here,” Lambert said.
The prices of the homes on the market are also more expensive.
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The home’s affordability index for a single-family home is now 63. The closer that number is to 100, the more affordable homes in the market are. And it has dropped about 6-percent since last year.
Last month’s report shows Duval county’s average home value is at $320,000. In Clay, it’s at about $361,000. And St. Johns is at $540,000, making it the most expensive county to buy a home in our region.
And Galavis says one reason for the increase in home values is because our area is attractive to homebuyers.
“The Northeast [region] still one of the best places to live and work,” Galavis said. “And we have people coming here to start family to get jobs.”
While it’s not an ideal housing market for buyers, Galavis still encourages people to purchase a home.
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“Because you’re building equity and generational wealth when you own a home and you’re not paying somebody else’s rent,” Galavis said.
A little good news, this week mortgage rates dipped by the largest amount in a year. The average 30-year mortgage rate dropped 26 points to seven and a half percent.
New this week, first time homebuyers are getting even more help. Florida housing approved an additional $36 million dollars to the hometown for heroes program. Military veterans and anyone who works more than 35 hours with certain income limits are eligible. In July 2023, the Hometown Heroes program received $100 million from the Florida Legislature to help Florida families purchase their first home in the community where they work.
You can find more details here.
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