High interest rates are hurting Northeast Florida home sales during an unusual summer.
Sales typically pick up in June, but this year both completed and pending sales are down, as interest rates of about 7% are keeping buyers waiting, according to the Northeast Florida Association of Realtors.
The number of closed sales in June fell nearly 11% from May to 1,907, while the number of pending sales plummeted 35% to 1,261, the Realtors Association said in a news release Thursday.
The median sales price of a single-family home rose 1.3 percent in June to a record high of $405,000, while the number of homes on the market is the highest since January 2019, according to the National Association of Realtors.
“The Northeast Florida real estate market has returned to a stable level among buyers and sellers,” said association president Rory Dubin.
Despite the rising prices, “other factors suggest the market is stabilizing and interest rates, which have been hovering around 7 percent, may finally be catching up with buyers,” the Realtors Association said.
Baker, Clay, Duval, Nassau, Putnam and St. Johns counties are seeing about a 90% increase in homes for sale since last year, according to the association's data.
Many buyers may be holding off on purchases in hopes of lower interest rates later this year.
A report released this week from the U.S. Department of Labor showed monthly inflation fell for the first time in more than four years in June, leading economists to speculate that the Federal Reserve may cut interest rates in September.