Jacksonville, FL Real Estate Market Update - August 2022

The gift of the market is that it is normalizing to pre-pandemic levels as the Federal Reserve pulls liquidity out of the system. Closed sales are down 28.7% YoY. Home prices are down 1.5% MoM. We are likely to have more of a slowdown moving forward as the Federal Reserve increases the overnight borrowing rate. The rate changes tend to show up in the economy 8-12 months later.

The shift provides a massive opportunity for top agents to take market share from agents who drop out of the business. Everyone can be a producer, yet few do. We will continue to raise our standards for our tribe, and we encourage other brokerages to raise their standards for the quality of the agents they choose to partner with to serve our community. Together, we can make a positive difference in the professional real estate community by enacting standards and expectations. Our communities deserve better.

Even with the market changes, there is a tremendous amount of business in the market for agents and the primary change will be the timeframe in which agents get compensated for their work. Instead of getting paid in 1-2 months, it's likely to push to a 3-4 month cycle. Agents should prepare their mindsets and financials for this change.

Lastly, the shift creates a benefit for buyers who now have more negotiating power and more options. It's frankly, a breath of fresh air. A slower pace to a normalize market is a really good thing long-term. Agents should enjoy this new pace.

My prediction is:

• Residential housing inventory will continue to increase.

• Home appreciation will slow to a normalized range (3-4% appreciation) between now and the end of the year. Next year it's possible we could see prices decrease a little YoY.

• Demand will continue to fall due to the rising cost of capital, fear of economic turbulence, and job loss.

Agents and investors who are well prepared and capitalized will benefit greatly from the market that we are entering.

For more information, email jon@movewithmomentum.com

Let's go! #gametime #opportunity #movewithmomentum