Jacksonville Market Improving for Buyers and Sellers
The Jacksonville real estate market was hit hard at the end of the last decade, but it is showing surprising strides toward recovery. Local job markets, housing starts, and interest rates indicate increased profit and activity in local home sales.
The Jacksonville market took a huge hit at the end of the last decade, as did most of the rest of the country. Home values were sometimes cut by as much as 50 percent, sales were stagnant, and new housing starts were almost nonexistent. The real estate market in this area has made some impressive improvements in the last few years, and signs of a recovery are spreading. Other parts of the country may still be struggling, but the market in Jacksonville has begun to turn the corner and is in an upward swing, with equally encouraging news for both buyers and sellers.
Mortgage interest rates in Florida and the rest of the country have been dropping in the last few years. Lower rates can only be good for the Jacksonville market because they open up the availability of home ownership to larger groups of people. Buyers tend to put a cap on their monthly payments, so when interest rates are down they can afford to buy more house for their money. This helps local area sellers, who can close on houses with a higher final sales price.
Employment rates in the Jacksonville market have stayed ahead of the curve. Instead of the steady national average of job growth, Jacksonville and other Florida areas are booming with people who have unexpected steady income. Families who thought they were relegated to the rental market for at least a few more years are now looking for homes to buy. This new group of home buyers has turned the local real estate market into a lively forum. Sellers are once again welcoming competing prospective buyers, and prices are expected to rise because of this competition.
New Housing Starts
Real estate investors are showing renewed confidence in the Jacksonville market by investing in new housing starts in the area. The inventory of new homes available has grown substantially since builders are again willing to take a chance on the local housing market. Builders are finally starting to show a backlog of sales contracts, which will positively impact the local economy by creating new jobs, improving neighborhoods, and injecting money into the local economy through the purchase of materials. This miniature housing boom appears to be the beginning of a steady, larger trend in the growth recovery in the Jacksonville real estate market. Eager to bounce back from the real estate problems of the last decade, serious investors are looking toward northern Florida for their base of operations.