State of the Jacksonville Real Estate Market through the First Quarter of 2014.
It's hard to believe we've almost made it through three full months on the New Year! The Jacksonville real estate market is in an interesting place at the moment. Fragile is a word I've been using lately and you'll see why below
Statistics on Home Sales in Northeast Fl.
Home Prices are up just at 6% YOY in Northeast Florida
Sold Volume about the same 6% up Year over year.
Inventory is up 8% and New listings is up 10%
Average Price of a home in Jacksonville $184,000 up from
Market Trends we're noticing
Mini-bubble markets in Atlantic Beach (prices up 29% YOY), Riverside San Marco and others.
Lean towards new construction in Northwest & Northeast St. Johns Counties (Prices up 17% YOY)
Price declines continue in TROUT RIVER /COLLEGE PARK/RIBAULT MANOR
Location, location, location on homes prices above 200,000
Housing Trends we're seeing
Open Floor Plans still rule
Smaller homes going for more money
Relocation buyers don't care about CDD fees but locals do.
We've had 2 people asking about chickens on their property in Jacksonville
Sellers:
More competition might mean longer on the market be prepared for that but...
Also Be prepared to move quickly, Spring is relocation time buyers don't want to wait to get their new home!
Upgrade one item in your home to be a showpiece and reap the rewards
Buyers:
Rates are still great, look at options on loans such as a 203K loan, the MCC program bond money for 1st time home buyers in Jacksonville
If it sounds to good to be true it probably is: sites like Auction.com and HUD bid properties aren't for the faint of heart.
Narrow down your location and be patient (if possible), more homes are coming on the market every day.
The Big Investors are slowing down purchases in Jacksonville
In 2013 large investment trusts swooped into Northeast Florida purchasing over 1,000 homes. We are seeing is a pullback in those purchases, while they are still buying they are being more selective. Last year, a newer distress sale generally sold within days of hitting the market. In the 1st quarter of 2014 the distress sales are taking longer to sell. West & North of the St. Johns river especially. Our opinion is the investors are counting their current inventories for these area and taking a breath. Here's an article from bloomberg discussing how Blackstone and other large investment companies feel they caught the bottom of the market previously.
What the slowing pace of distress sales means to you.
Last year distress homes weren't your competition this year they might be. In 2013 distress sales would come and go so quickly off the market they weren't dramatically effecting traditional sales in Jacksonville. Now a "short sale" home priced much lower than the traditional sale makes the eyebrows of prospective buyers of traditional sales go up. When a buyer sees a 2500 sqft home for sale for $185,000 compared to a 2,000sqft $200,000 sale both actively being marketed "For Sale" it makes them pause. In 2013 the distress sale wouldn't have lasted more than a week and the prospective buyer wouldn't have noticed, made their offer on the traditional sale, going to closing and raising the value of the neighborhood. In my opinion this scenario will be the cause of slowing price gains in Northeast Florida. Also a side note on this, if more traditional buyer jump back into purchasing short sales or foreclosures this will slow the overall market as well. If you live West or North of the St. Johns river and are thinking of selling give our Remax Team a call, we can see if any or how many distress sales are listed near you and try and help you offset that with unique marketing efforts if you are wanting to sell your home. If you're looking to buy in these areas and have the patience of Job, you may want to look at short sale properties in West and North Jacksonville.
629 Short Sales sold 1st Quarter of 2013
257 Short Sales Sold 1st Quarter of 2014
865 Short Sales currently for Sale in our Northeast Florida MLS
Home Price increases mixed with inventory increases what does it mean?
Jacksonville sellers have more competition but it may be worth it, Buyers have more options but you're going to pay for the nicer properties. If you have a nice house with nice features it's worth a lot more money now than it was last year. If you have a mediocre or ugly home it's probably worth about the same or a bit more as it was last year. If your home shows extremely well and has a knock out feature or two you can probably set a record sale in your neighborhood. But if it's a plain home it's going to take effort and time and probably a price reduction or two. The market is better for getting more money but your home has to want to show that it's worth it! Call our family Real estate team to help you make your home go from "For Sale" to "Sold"! Higher prices means less buyers, more homes means more competition than last year.
Financing:
203K loans are moving faster
USDA Loans are moving slower
It may be better to do 5% down conventional loan Vs an FHA
The Florida Housing Mortgage Credit Certificate (MCC) Program can help first time homebuyers save money each year that they live in their home. With the MCC Program the homeowner can claim up to 50 percent of their paid mortgage interest each year as a TAX CREDIT on their federal IRS tax return. The credit is capped at $2000 annually and any remaining mortgage interest not included as part of the TAX CREDIT is still eligible for the home mortgage interest deduction on their federal tax return.
Each year, a homeowner may claim a dollar-for-dollar reduction of income tax liability on 50 percent of the mortgage interest on their first mortgage, reducing the amount of federal taxes owed by as much as $2000.
The MCC Program has income and purchase price limits. The limits for Duval, Clay, St Johns and Nassau for a family of 1-2 is $76,800 and $89,600 for a family of 3+. The max purchase price is $357,962 which should certainly cover most first time buyers out there!
Tip to David Wakefield 904-394-1398 with Prime Lending on the MCC information
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If you are thinking of buying or selling a home in Northeast Florida please call our family Remax real estate team at 904-260-3787