Q1 2023 St. Johns County Market Report: Strong Seller's Market Persists Despite Rate Pressures
By Inna Moskalyk
Apr 5, 2023
Tags:Market Reports
As we wrapped up the first quarter of 2023, St. Johns County's real estate market continued to demonstrate remarkable strength. Despite mortgage rates climbing toward 7%, buyer demand remained robust, keeping inventory tight and sellers firmly in control. Here's your comprehensive look at Q1 2023 market conditions in Northeast Florida.
Q1 2023 Market Statistics
The numbers tell a clear story: St. Johns County remained one of Florida's hottest real estate markets through the first three months of 2023.
- Median Home Price – Approximately $585,000 in St. Johns County, reflecting continued appreciation from 2022
- Inventory – Less than 3 months of supply, firmly in seller's market territory
- Market Conditions – Strong seller's market with multiple offer situations still common on well-priced homes
- Cash Buyers – Remained highly competitive, often winning in multiple offer situations
Interest Rate Environment
Mortgage rates presented the biggest challenge for buyers in Q1 2023. After the Fed's aggressive rate hikes throughout 2022, rates started the year around 6.5% and climbed toward 7% by March.
According to Freddie Mac's Primary Mortgage Market Survey, 30-year fixed rates averaged between 6.5% and 7% during the quarter, leading many buyers to debate whether to "lock or wait."
Despite higher rates, buyer activity remained strong. Many purchasers focused on the long-term value of Northeast Florida real estate, planning to refinance when rates eventually decrease.
Local Market Highlights
St. Johns County continued to earn recognition as one of Florida's most desirable places to live:
- Nocatee Recognition – Continued its ranking as one of the best places to live in Florida, attracting families seeking top-rated schools and resort-style amenities
- New Development – Several new neighborhoods announced, including Crosswinds and Palm Crest developments
- Population Growth – St. Johns County remained one of the fastest-growing counties in Florida
The post-pandemic "new normal" continued to settle in, with remote work driving sustained relocation demand. Home office space and outdoor areas commanded premium prices as buyers prioritized lifestyle features.
What This Means for Buyers & Sellers
For Buyers:
Competition remained fierce in Q1 2023. Success strategies included getting pre-approved before shopping, being prepared to move quickly on listings, and considering new construction with builder incentives. Many builders began offering rate buy-downs as an alternative to price reductions.
For Sellers:
The market continued to favor sellers, though pricing strategy remained important. Overpriced homes sat longer while correctly priced properties still generated strong interest. Working with a local agent who understood neighborhood-specific trends was essential.
Looking Ahead to Q2 2023
As we headed into spring-traditionally the busiest home buying season-expectations were high for continued activity. The combination of strong job growth in Jacksonville, excellent schools in St. Johns County, and Florida's tax-friendly environment continued to attract buyers from high-cost states.
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Get Your Personalized Market Analysis
Whether you're considering buying or selling in St. Johns County, understanding hyperlocal market conditions is key to success. Contact me today for a personalized analysis of your neighborhood and strategic advice tailored to your real estate goals.