Are you thinking about buying or selling this year? You may find it helpful to review these key data points.  Here are the answers to the biggest questions I get around our market:

·      Is our market growing? Yes! Every day around 800 people move to Florida and $4.1M per hour comes into the state with new companies relocating here.  Every metro in Florida is seeing job growth. In Northeast Florida specifically, we are seeing relocations coming from these key markets: Miami at 13%, New York/New Jersey 12%, and Georgia 3.8%.  The Jacksonville metro’s population is projected to grow 2% per year through 2050.

·      Are there more buyers coming into the market? Yes! Mortgage applications have surged since the election (up 23%)

·      Will my home value appreciate?  On average, prices go up 5% in this area every year. Real estate is fairly priced relative to historical growth trend. The median sales price in St Johns County is now $500,000.

·      Will there be a crash any time soon?  No. We are still in a balanced market.  We have 4 months of supply in Jax metro vs 5.7 months in Florida.  When there is over 8 months of supply is when home prices start declining.

·      What about new construction? This now accounts for approximately 33% of closed sales. This is a high number generally due to builder incentives, available inventory and consumer preference.

·      What is the luxury market doing?  Luxury buyers are choosing Northeast Florida, and St Johns County leads the way. Of the 1,660 sales over $1M in Jax 2024, half of these were in St Johns County. 

·       What are the chances I could get a cash offer on my property? About 30% of transactions are made in cash. There are a high proportion of cash sales especlally in the luxury home market.

·      How long does it take to sell? 45% of single-family listings went in contract within 30 days. Half of the listings will sell in 2 months, the other half will sit and have to do price reductions to sell. Setting an appropriate initial list price is important.

·      Are concessions being negotiated into sales? Yes! In 32084 the average concession is $10,000 for a single-family home. For new construction the average concession is $20,000. Contact me for more info about this by zip code and property type.

·      Will interest rates go down? Should I wait to buy a home? When we look historically at this and also at the Fed Funds rate, interest rates are in an uptrend and could go up further.  For buyers, the longer it takes to find something, it may cost you more.  If rates come down, prices will rise.  We saw a premature decline in rates in prior months as investors expected more Fed cuts than they’re getting.

·      What can I expect when selling my condo? Condo sales decoupled from the market starting in 2024 and are no longer following the same pattern as single family homes. We currently have 8.8 months of supply of condos vs homes at 4 months of supply. However, when we look at appreciation, condos have been a top performing asset class, second to mobile homes. The average condo in St Johns County is $544,000. 

·      Is it expensive/difficult to get homeowners insurance in Florida? The average insurance policy in Florida is up 30% over the past 2 years, however many private insurers have entered the market recently which creates competition. The average cost to insure a home in Jacksonville is $3,000/yr, well below the state average, with Miami at $6,000. Newer homes cost less to insure, with $628 for the average annual premium, versus $3,000 for older homes.