ST. JOHNS COUNTY, Fla. — Since the pandemic, home buyers from outside Florida have been swarming into the Sunshine State to start new lives.
Which is good news for some. Why? Interest rate hikes.
Just a month ago, house builder and neighborhood developer Chris Shee of St. Augustine told First Coast News he couldn’t build homes fast enough for the out-of-towners who wanted the Florida life.
"About 80 percent of our new house contracts right now are from people from out-of-state," Shee said.
Again, that was a month ago.
Monday, St. Johns County Real Estate Broker Teresa Mercurio said there are certainly people from outside Florida moving here, but it’s slowed down a little.
The recent interest rate hike has buyers tapping the brakes Mercurio said.
"Not just out-of-town buyers, but local buyers," she noted.
The 30-year fixed-rate mortgage averaged 5.81% last week, according to Freddie Mac.
This time last year, rates averaged 3.02%. Rates haven’t been this high since 2008.
Mercurio explained, "The outcome of this is that prices are going to start to decline. The inventory is going to start to grow again."
And that means the for-sale signs are in the front yards longer too.
Pointing to a graph from the Northeast Florida Association of Realtors, Mercurio said, "At the end of May, "days on the market" was just over 26 days. The end of June, you’re probably going to see that come up to 35 – 40 days."
She said the market is starting to moderate.
"It’s healthier for the buyers because it gives buyers more opportunity to get in there and not have a multiple-offer situation and go higher, highest and best," Mercurio said.
Time will tell if this is the wind of change or just a blip in the housing market that out-of staters will overcome.