Market Snapshot: What You Need to Know-April 2023
Welcome to the Monthly St. Augustine Market Report for April 2023. In this month’s market update I wanted to include a look at factors that are driving our current market and I wanted to attempt to answer the question I keep getting asked and that is “will we see affordability this year?” Let’s get started
Driving Factors in the St. Augustine/St. Johns County Market-April 2023
So any time we look at a real estate market there are usually 3 factors driving it: price dictated by supply and demand, interest rates, and wages. Last month we talked about the low inventory which is playing a factor but the biggest drive right now is interest rates. They’re up, they’re down, where are they going?
Now while I don’t have a crystal ball I do have this graphic right here. Going back to the fall of 2022 when interest rates hit their peak at over 7%, we are seeing the interest rates tick downward again. That’s good news for our area as we are heading into our peak selling season. I am not suggesting that we are out of the woods yet but we are heading in the right direction.
And since I mentioned price driven by supply and demand we did see an uptick in homes coming onto the market it our area. That will help drive prices downward slightly. Last month I included this graphic which took us through the end of 2022.
Now, there are two extra month’s data available and we can already see a slight drop in prices. Again, not saying we are out of the woods but we are heading in the right directions.
Will We See Affordability This Year?
The graphic right here shows the affordability of homes since January 2022. The higher above the dotted line the more affordable the market is. If you look at October 2022, when homes in St. Augustine hit their peak, you’ll notice the bar is below the line. We do see a slight upward trend which is good for those looking to buy. In fact last month we talked about how prices are estimated to drop slightly this year before going up in the next couple of years.
Finally here is a snapshot of our local data. When looking into real estate it is very important that you look for local area statistics and not rely on national news. Every area is unique and his impacted differently by exterior factors. It is important that you find a local area expert that you know and trust. I myself grew up in St. Augustine and many of the agents at First Coast Realty are 20+ year residents in our area. We are your Northeast Florida local area experts. We have an experienced team of professions working for you whether you are looking to buy, sell, invest, or find someone to manage your rental we have an agent for you. I’ll see you again next month with a new update on our local market.
So What Does This Mean For Buyers and Sellers?
So what does all this mean? Interest rates are still scary but owning a home is still far less expensive and much more stable than renting. Prices have begun falling but the ratio of sales price to list price still hovers close to 100%. It is more important than ever for buyers to go in strong with an offer and have all their ducks in a row. You might not get a second chance.
To the sellers out there, the peak of the market has passed. If you are thinking of selling do it now before prices drop more. Call First Coast Realty to receive a complimentary Broker’s Price Opinion.
Whether you are looking to buy or sell, First Coast Realty would welcome the opportunity to earn your business. Feel free to reach out to us on Facebook or Twitter and we would be happy to assist you in getting the ball rolling. Or, to talk to a qualified, experienced agent call/text today 904-494-8408 or email email@example.com