Jacksonville Home Prices Fall 6.5 Percent, Shifting Negotiating Power to Buyers

Written by:

Rudi Davis

Date:

12 Dec 2025

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Open houses in Jacksonville look very different today from how they did just a few years ago. In 2021 and 2022, many homes attracted multiple offers within days of listing, often selling above asking price. Buyers frequently waived inspections to stay competitive, and sellers had little reason to negotiate on price or terms.

That pace has slowed. Homes that once sold at 105 percent of list price are now closing well below asking, with final sale prices averaging about 93.5 percent of original list. Buyers have time to tour multiple properties, weigh their options, and negotiate repairs or costs — a noticeable shift from the pressure-filled market of the pandemic boom. Terry Sadowski, a realtor with RE/MAX Specialists who has worked in Northeast Florida since 1986, describes today’s conditions as “a little bit more of a balanced market.”

Longer Waits, More Concessions

The market’s slowdown shows up in two ways: homes are taking longer to sell, and sellers are making concessions that were once unnecessary. In St. Johns County, one of Jacksonville’s most sought-after areas, homes now average 72 days on the market before selling. In Duval County, the average is 85 days. During the pandemic boom, most homes in these locations sold within days, often after multiple offers in the first hours of listing.

Sellers have responded by making deals easier for buyers to afford. Instead of holding firm on price, many are paying some of the upfront costs of buying a home, offering warranties to limit repair surprises, or contributing toward mortgage rate buydowns that lower monthly payments. “Sellers who expected bidding wars are now offering to cover closing costs just to get a deal done,” Sadowski says.

Buyers are no longer rushing into decisions. They are touring several homes, taking their time, and negotiating terms. The sense of urgency has faded, and the balance of power has shifted toward buyers.

What Has Changed

Three main factors have moved Jacksonville’s housing market from a seller’s market to a more balanced environment:

1. Higher Mortgage Rates: Interest rates have risen from around 3 percent in 2021 to approximately 6.25 percent today. The result is a sharp drop in purchasing power. For example, a buyer who could afford a $600,000 home at 3 percent can now only qualify for about $540,000. This $60,000 difference has forced sellers to lower prices or wait longer for a sale.
2. Increased Inventory: Jacksonville’s housing supply has climbed to 4.9 months, approaching what many agents consider a balanced market. That is a sharp change from the sub-two-month inventory levels seen during the pandemic, when limited supply fueled bidding wars. With more homes available, buyers have choices again, and sellers must work harder to stand out.
3. Slower Migration: The surge of people moving to Jacksonville from cities like New York and Miami has slowed. While out-of-state interest remains, the flood of buyers willing to pay any price has eased. According to Sadowski, there are plenty of buyers who are interested, but they’re waiting on the sidelines. “If we see even a half-percent drop in rates, a lot of buyers could jump back in.,” he says.

What Buyers and Sellers Should Do

For Buyers: Make offers below asking price on homes listed for more than two weeks. Sellers are open to negotiation. Request inspection contingencies and repair credits — terms that were rare two years ago. If mortgage rates are a concern, ask the seller for a rate buydown to help lower monthly payments. Many are willing to make concessions to close a deal.

For Sellers: Price your home competitively from the start. Overpricing leads to longer market times. Consider offering a closing cost credit — $5,000 can make the difference between an offer and another week without activity. Invest in professional staging and photography, as first impressions are crucial now that buyers have options. And be flexible with showings, even if the times are inconvenient. “You gotta take every single showing,” Sadowski advises. “You never know when that buyer is going to be the buyer.”

Looking Ahead

Sadowski anticipates stronger demand in 2026, as inventory stabilizes and buyers wait for even small drops in interest rates. “I think we’re poised to have a really good 2026,” he says. For now, though, Jacksonville remains a buyer’s market, especially as the holiday season approaches and motivated sellers become more flexible. Buyers who have been waiting for better conditions may find that now is the right time to act.

About the Expert: Terry Sadowski is a realtor with RE/MAX Specialists in Jacksonville, Florida. He has worked in Northeast Florida real estate since 1986, with extensive experience in new home sales and resale markets across St. Johns, Duval, and Clay counties.

This article provides insights into current real estate trends in Jacksonville and does not constitute legal, financial, or investment advice.