Jacksonville, FL Real Estate Market Report:
The pandemic real estate rush has finally drawn to an end. With inventory growing, and homes moving slower, the market is starting to cool down.
Jacksonville home sale prices are down and time to sell is up!
After several years of record price growth and inventory flying off market, November home sale prices dropped 6% to an average of $327,000. Days on market rose sharply to 47 days, the longest marketing time seen in over 2 years.
Active listings have risen drastically and reverted back to 2019 levels.
New listings and sold listings are down. Even with more available inventory, the dwindling demand can't keep up with the active listing inventory. Months of inventory have again exceeded 3 months, heading towards a more stable market.
What's up ahead?
Mortgage interest rates show no sign of coming down as the feds attempt to fight raging inflation, leading to little demand for new mortgages. Mortgage affordability is at an all time low, leading to an increase in defaults. Values are headed down nationwide, leaving many recent purchasers in negative equity.
According to Black Knight:
- Appreciation has cooled for 7 consecutive months
- Foreclosure starts are up 6.5%
- Of homes purchased in 2022, 8% are now underwater, and 40% have less than 10% equity. This number is even higher in Jacksonville, FL approaching 50%.
- 25% of 2022 FHA/VA buyers are now dipped into negative equity.
- 1.26 million homeowners are still in forbearance, of which almost 60% are in loss mitigation workout programs or actively facing foreclosure.
It is safe to say that the market is definitely headed towards even more turbulent times and all signs point to further declines in the Jacksonville Florida real estate market.
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Last Updated on December 5, 2022 by Minna Reid