Jacksonville, Florida Real Estate Market Crash
There’s many speculating that real estate markets across the country are about to collapse like they did in 2008. Yet, that couldn’t be further from the truth. The fundamentals of the real estate market remain strong. Overall, there is no real estate market crash coming. And, frankly, I wish there was: so I could buy more real estate.
The data, even after a 12-year bull run and the last two years of atypical price appreciation, still tells us that this market has legs to run. Yes, it’s likely that we will experience slowing price appreciation in the years to come, or even a slowdown in the number of offers per listing, but that’s no where close to a crash like we observed previously. And, it’s unlikely that housing will become cheaper for the average retail buyer in the marketplace.
Here’s the reality:
Demand is still outstripping supply. In Northeast Florida, we are still at 1.2 month’s supply of inventory (a balanced market is 6 months supply). And, some homebuilders are saying that the housing supply issue could get even worse in the months to come.
The United States is currently up to 3.8 million residential homes short of demand.
40%+ of properties in Northeast Florida are going into multiple offers and selling above list price.
The age demographic of 25-32 years old is going to be the next segment of homebuyers over the next 5 years and it looks very positive.
Mortgage interest rates continue to be range bound and it’s unlikely that the Fed will raise rates to bust the economy. Find out where rates could be at today for your home mortgage.
Hedge funds are still purchasing single family properties and turning them into long-term rentals.
There’s currently 4 offers per home listed versus 2 offers per home just a few years ago.
If you’re a buyer in today’s market, it is likely that you will be paying more by waiting for the market to change. This could be simply in the form of mortgage interest, where a 1% increase in interest rates decreases your purchasing power by 10%.
If you want to get started by working with a top real estate agent in your market, simply reach out to jon@movewithmomentum.com or call 904-351-6461.
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