Northeast Florida Home Affordability Index falls nearly 35% in 2022

The Home Affordability Index for single-family homes in Northeast Florida fell steadily in 2022 from 104.5 in January to 69 in December. The index had dropped 34.9% in 12 months. The closer the index is to 100 or higher, the better.

The major factor in the lowering of the index throughout 2022 has been the dramatic increase in mortgage interest rates from around 3% to over 7% at the peak.

Throughout the year, prospective buyers were priced out of the market.

The first half of the year showed increasing costs, low inventory and listings lasting little more than a week. 

The second half found median prices stabilizing, increased inventory and a greater number of choices for buyers.

The median price of a single-family home fell 1.7% in December to $370,000 from $376,385 in November.

The December 2022 median price was 5.7% higher than in December 2021.

Single-family home sales usually fall in December because of the holidays.

December 2022, however, was different from December 2021.

There were 1,583 closings, down 38.4% from 2,570 in December 2021.

Pending sales also showed a decline, with a 31.9% drop to 1,324 in December 2022 compared with 1,944 in December 2021.

The closed and pending unit sales in the combined single-family, condo and townhouse market in Northeast Florida has been relatively stable for the past 3-4 months with just slight movement month over month as we would expect in line with the seasonality of a ‘normal’ real estate market.

Days on market is now a median of 50 days, which is more typical for a balanced market while only a 3.2-month supply is still considered a ‘sellers’ market.

The number of new listings coming on the market is following the historic seasonality with fewer new listings during the holidays and an anticipation of an uptick in mid to late spring.

When condos and town home sales are added, the median price for the three home types combined was $345,00 in December, similar to the March 2022 median price of $350,000.

It peaked in July 2022 at a median of $375,000.

Bottom line: The housing market is normalizing and this is a good sign.

Source: Jacksonville Daily Record and Northeast Florida Association of Realtors

If you have real estate questions or interested in buying or selling a home in Northeast Florida, please contact me at (904) 307-8998 or email williamvasana@kw.com. As a local area expert in Jacksonville Florida, I offer the highest level of professional services, luxury condo savvy, extensive residential experience, and intensive knowledge about Jacksonville neighborhoods and the overall market in the pre-construction and luxury development. I specialize in residential homes, condominiums, waterfront properties and new construction homes in Duval, St. Johns and Clay counties.