JACKSONVILLE, Fla. — New research from Northeast Florida Association of Realtors (NEFAR) is showing the impact of inflation and high interest rates on the housing market.
According to NEFAR, the Northeast Florida Home Affordability Index fell by nearly 35 percent last year, in 2022.
Diana Galavis is the 2023 President of Northeast Florida Association of Realtors.
“The interest rates are going up, but we are hoping that they steady just a bit going into the spring selling season,” Galavis said. “We are just at 3.3 months of inventory.”
Many factors can explain why the index has fallen -- like inflation, supply issues, demand with so many people moving to Florida and mortgage interest rates.
The closer the index is to 100 or higher, the more affordable. But in December 2022, it dropped to 69.
Galavis said with interest rates hopefully steadying out -- NEFAR is looking for an influx of buyers coming into the market and home sellers putting their home on the market.
Action News Jax spoke with Alejandro Noguera, a Jacksonville renter.
“Renting at first to see how everything is with housing at first and then we’ll probably try to buy something,” Noguera said.
Noguera shared his take on the housing market right now.
“The numbers have been kind of crazy, but I feel like it’s still possible,” Noguera said.
In December of 2022 in Northeast Florida, median home sale prices were around the $370,000 range -- which is up about 5.7 percent from the year before and down 1.7 percent from November 2022.
“Our average days on the market is 50 days,” Galavis said. “Of course, that is a little up -- which is nice because buyers are able to take a little bit more time, take a look at the inventory and shop but it is still a seller’s market.”
Here are a few tips Galavis has for those hoping to start the home-buying process.
“I would recommend getting with a trusted advisor,” Galavis said. “A realtor is going to be your first stop. There are lots of first time homebuyer programs and incentives that are out there that are available to the buyers. You want to be the most informed.”
CLICK HERE to learn more.
[SIGN UP: Action News Jax Daily Headlines Newsletter]