I can hardly believe the fall season is upon us! I hope you are starting to get some quality family fun in with fall festivities and other fun happenings. Our family spent last weekend at the pumpkin patch and checked out a super fun family fall festival in Hastings, FL (just 45 minutes south of Jax). If you are local I highly recommend Sykes Family Farm.
With us entering Q4 of 2024, I felt it would be the perfect time to catch up on what's happening in the Jacksonville real estate market, share some local updates and offer a few handy home maintenance tips.
Let’s dive in!
JACKSONVILLE MARKET IS SHOWING SIGNS OF STEADY GROWTH. HERE’S A FEW TRENDS TO KEEP MIND OF THIS FALL.
Inventory is Rising: The number of homes on the market is slowly increasing, giving buyers a little more breathing room while demand remains strong. The positive to listing your home right now is that current buyers are serious buyers (more on that later). In our specific area, although inventory has increased, prices have remained stable.
Mortgage Rates: Interest rates are fluctuating. We have seen some high 5%'s, and varying on factors mostly teetering in the 6%'s, which is still a relatively average interest rate. This has impacted affordability, which again means buyers that are out are serious. Jacksonville continues to be a hotspot for families, military relocations and investors alike due to its relative affordability compared to other metro areas in our state.
Average Home Price: The median home price in Jacksonville is holding steady around $389,945, which is a slight increase from last year. It’s still a great time for sellers, but buyers should also feel confident knowing that Jacksonville offers a lot of value for the money.
YEAR-END SELLERS: STAY ON THE MARKET
Many may think if your home has been on the market for a bit and you haven't gotten the traction or interest you wish, you may remove it from the market until the new year. Studies show to NOT do this.
Buyers right now, and in the coming 30-45 days, are some of the most serious. Despite the higher rates (although rates are the current lowest they have been in 24 months), if buyers are out shopping, they are serious about making decisions. Additionally, there are tax benefits for buyers closing before January 1st for the FL homestead opportunity. Tons of sellers will pull their homes from the market this time of year. This means by remaining on the market, when other sellers go off, you’ve increased the likelihood of buyers choosing your home.
While you may see slower showings and more days on market, these are all very normal. Days on market has recently landed between 1-3 months! I have had listings that I felt would go quickly, but have taken 2.5/3 months, and I have had listings go the first weekend on the market, with solid terms from the seller that I felt would sit for at least 3-5 weeks. There really is no rhyme or reason beyond certain areas, but even in these "hot pockets" some homes sit.
I am encouraging all sellers to go in with the mindset your home will be active for anywhere between 1-3 months, and consider it a huge win if it is under this. This is the reality of the current market and its varying the factors we’ve discussed. With days on market up 17% since this time last year, as well as new listings (up by 22%) and active inventory (up 74%), the data tells us we are entering a more stable market for both buyers and sellers.
Northeast Florida is sitting at 5 months of supply for total inventory. This is the highest we have seen since 2020. Research shows "6 months of supply" equates to a stable market. So, technically, NE Florida is still a sellers market. However, with such an increase in inventory, it does seem buyers have more negotiation power than they have for many years.
Sellers, in this market, have to be willing to negotiate. To maximize your value out of your home, you have to be sure you are offering a solid product: no long-term aging systems, no deferred maintenance, a home that has been maintained, etc. If these items are not complete, you cannot expect to receive top dollar.
RENTAL OWNERS, THIS ONE’S FOR YOU
For those who own rental properties, we are seeing rental rates take a slight dip in rental prices due to increased inventory heavily on the rental side.
We have almost 5x the amount of rental homes currently on the market than we have ever had in a long, long time in NE Florida. The reason behind this is several factors.
First, during the craziness of the market 2020-2021, 30% of our homes in Jacksonville and surrounding areas were purchased by hedge-fund investors. These are large corporations that were throwing competitive cash offers out at sellers. At the time, many sellers were taking those offers versus selling to an actual family. These corporations then re-entered the homes into the rental market.
Many sellers at the time had their homes rented out, but many saw either a huge return could be made or maybe they never had the interest to be a landlord. However, based on when they bought, these owners could not sell, and when prices rose so quickly during this time, they were able to get out. We lost tons of rentals initially, which also squeezed our rental market beginning in 2021 and drove rental prices up. However, since those homes have come back into play on the rental side through these corporations, it is pushing more homes back for rent.
Second, you have people who did buy during this time, and have locked in low rates that we likely may never see again, so they are clinging to those homes and keeping them for intentional investments.
Third, you then have people who have purchased the last two years with slightly higher interest rates, and with no huge price increases across the board here in NE FL, they financially cannot sell and have to rent.
These three LARGE groups of people pushing homes out to our rental market, therefore giving us more homes on the rental market than we have had in a long time and causing the rental market to almost be over-saturated. Renters, like buyers, have more options than ever before and are often selecting homes based on affordability due to other economic factors.
So, if you are a landlord don't be shocked if your rent rates dip slightly than they have in the last few years, it's not your home, its the market.
FALL HOME MAINTENANCE TIPS
As the temperatures cool, it's a great time to prep your home for the fall and winter months. Here are some quick tips to get your home ready:
CLEAN OUT GUTTERS: As the leaves fall, keep in mind this can clog gutters. Perhaps schedule out for a gutter cleaning toward the end of the season to ensure no damage or issues arise
SERVICE HVAC: I am certain, especially here in Florida, your AC has been cranking all summer long! Before we head into some cooler months, and winter, be sure to have the system routinely maintained to ensure the heat aspect is working just fine.
SEAL WINDOWS + DOORS: now is a great time to check all doors and windows for good seals. Whether it's caulking, or weatherstripping. This will help with the insulation of your home in cooler months.
FIREPLACE: If you have a fireplace, you likely have not used it since last season. It is highly recommended to get this professionally inspected before using again.
WHAT CAN WE DO FOR YOU?
As always, we're here to be your NE Florida Real Estate Expert. Whether you are looking to sell, buy (more investment homes, or your own primary), or have real estate related questions, I am always here for you!
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