Home Prices Have Begun Falling: Here Are the Cities Where They’re Down the Most
Home Prices Dropping! – [Market Update]
Home Prices are Dropping!….or are they?! We have seen the headlines! Florida is the least affordable state, rents are increasing, as well as interest rates. Are we seeing the changes in the local market that some are seeing nationally?
Home Prices Dropping! – [Market Update]
Home Prices are Dropping!….or are they?! We have seen the headlines! Florida is the least affordable state, rents are increasing, as well as interest rates. Are we seeing the changes in the local market that some are seeing nationally?
There are some markets in todays world that are cooling off a bit from the Highs of 2021. When looking at these articles you need to understand that they are mostly comparing this year to last year. Last year had record low interest rates and a pandemic that spurred people to rethink their living conditions.
According to Realtor.com these are the TOP 10 Cities where you are seeing home prices DROP. They note that most of these drops in the cities are from smaller entry level homes entering the market. Where are most of the homes cities located. In the Northeast. A lot of these cities saw an large influx of people during the pandemic; people looking for more space and affordable housing.
Just like many people thought; the market is changing. Most of the changes I read in the article state that many of the cities have more affordable housing hitting the market which is affecting median sales price. Realtor.com also noted that this is not a reflection of the 2008 housing crash and is most likely because of the changing market conditions. Prices needed to lower to meet the buyers in the market. Especially with the change in interest rates.
Now when I compare what is going on Nationally to my local area. There are some large differences. Employment in Jacksonville is growing and we continue to have one of the lowest unemployment rates in the country. We have an affordable housing crisis IMO here in St. Augustine; Jacksonville has more entry level homes because it is 10x the size.
Now we have seen more homes start to hit the market; though that typically happens as we get into spring and summer selling season. You can see on the graph that the homes are still selling at a high rate; though when you compare it with 2021 it will show a decline.
I went back to 2018; pre pandemic. Our market was still in a sellers market here in NE Florida; prices climbed 3% that year. Homes sold for 97% of list price. The Monthly supply of homes was 3.2. Our market was appreciating with interest rates at the 4-5% range.
Vs. Today; Interest rates are back where they were pre-pandemic. The high 2s and low 3% interest rates are gone. How is that changing our market? The answer is; We are not entirely sure yet but I believe it will not change it that much. Year over year we are at 25% appreciation in prices. Homes are selling for 101% of list prices. An astonishing 42% of homes are selling over list price in todays market. Our monthly supply of homes is at a meager 1.2.
The one thing I will mention is we have seen a reaction to the change in interest rates; though it has not slowed down sales or price appreciation. I have seen more homes coming back on the market as well as seeing many price reductions across our market. I have people reaching out all the time that see price drops and thinks the sky is falling here in the area. What actually is happening is some people are shooting for the stars hoping to land on the moon.
Now how does NE FL compare to the major areas in FL we know and love, Orlando, Tampa and Miami.
How do you think NE Florida will be affected in the next couple years?
https://www.realtor.com/news/trends/where-home-prices-falling-the-most/https://www.cbsnews.com/news/florida-least-affordable-state-us-miami-tampa-orlando-naples-rent/https://www.news4jax.com/news/florida/2022/04/29/florida-is-americas-least-affordable-place-to-live-report/?utm_source=facebook&utm_medium=social&utm_campaign=snd&utm_content=wjxt4&fbclid=IwAR3iS8hPqr0yPfvxxfU1qi2aF10n6WxHke3YaF_7FAbLaBcTIKr7SnpMzpMhttps://floridajobs.org/news-center/DEO-Press/2022/04/15/the-florida-department-of-economic-opportunity-announces-the-jacksonville-area-march-2022-employment-data
