Q2 2023 Jacksonville Real Estate Update: Slight Price Softening as Market Finds Balance
By Inna Moskalyk
Jul 8, 2023
Tags:Market Reports
The second quarter of 2023 brought subtle but significant shifts to the Jacksonville and St. Johns County real estate markets. For the first time in years, we began seeing early signs of market balance-a welcome development for buyers who had been competing in an intensely seller-favored environment. Here's your Q2 2023 market breakdown.
Q2 2023 Market Statistics
The most notable headline from Q2 2023 was the first year-over-year price softening we'd seen in quite some time.
- Price Adjustment – May 2023 median price showed a slight -1.86% year-over-year change-approximately $11,000 less than the prior year
- Jacksonville Metro – Median home price around $302,250 in June, down 4.7% from the previous year
- Market Type – Still technically a seller's market, but showing early signs of balance
- Inventory – Slowly creeping upward, giving buyers slightly more options
While these numbers might concern some sellers, context is important: prices remained significantly higher than pre-pandemic levels, and well-priced homes continued to sell relatively quickly.
Interest Rate Context
Mortgage rates hovered in the mid-6% range throughout the quarter, creating a unique dynamic in the market. Many potential buyers adopted a "wait and see" approach, hoping rates would decrease.
The Federal Reserve's decisions continued to impact buyer sentiment. For current rate information, Freddie Mac provides weekly updates on mortgage rate trends.
Major Development News
Q2 2023 brought exciting development announcements for St. Johns County's housing market:
- PulteGroup Approval – Approved for two major developments totaling over 1,300 new homes
- Landings at Greenbriar – 588 homes planned for this new community
- Landings at St. Johns – 761 homes in a new 55+ active adult community
- Infrastructure Investment – Developers committed over $11 million for road improvements
The Durbin Park commercial expansion also continued, bringing more retail, dining, and services to the rapidly growing area around Race Track Road and I-95.
Neighborhood Performance
Not all areas experienced the same market dynamics. Ponte Vedra Beach continued to outperform the broader market, with approximately 7% year-over-year appreciation. Luxury coastal properties remained in high demand from both local move-up buyers and out-of-state relocators.
Strategic Advice for Q2 2023
For Buyers:
The slight cooling created opportunities for patient buyers. New construction became increasingly attractive as builders offered incentives including rate buy-downs and closing cost assistance. Competition remained strong, but bidding wars became less common.
For Sellers:
Pricing correctly from day one became more critical. The days of listing high and expecting multiple offers above asking price were fading. However, realistic pricing still resulted in solid sales within reasonable timeframes.
Looking Ahead to Summer 2023
As we headed into the typically slower summer months, the market was positioned for continued gradual balancing. Hurricane season preparation would become top of mind for Florida homeowners, and insurance costs remained a growing concern in the real estate equation.
Thinking about buying or selling this summer? Use our Mortgage Calculator to plan your next move.
Your Next Move Starts Here
The shifting market created both challenges and opportunities. Understanding neighborhood-specific trends is essential for making smart real estate decisions. Contact me for a personalized consultation and current market analysis for your specific area of interest.