Q2 2023: Local Pulse Quarterly Newsletter

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Wow, I can hardly believe we are over half way through 2023 already! Maybe its just me, but this year is flying by. I wanted to touch base and give you your quarterly update on our area for all things real estate and beyond! This year has definitely been interesting in the world of real estate. It seems to ebb and flow varying where exactly rates are, but one thing is for certain. The market is still moving.

 

YOUR MARKET UPDATE

Rates have fallen from where we started the year, which has triggered many buyers who were waiting for that exact moment. However, many continue to wait on the sidelines for rates to drop even more. Only time will tell if that will be the case -- more on that later.

Since rates have increased, we've seen inventory begin to level out. Homes are sitting on the market a bit longer than in the last two years, and buyers' purchasing power has changed simultaneously. But, believe it or not, on average, homes in NE Florida are on the market for 32 days. Additionally, home prices have jumped drastically. Many homeowners have gained enormous amounts of equity over the last three years.

When looking at the data coupled with higher rates, many believe prices will keep level or dip slightly as the markets slow down.

For those who are accidental landlords (or even not), if you're trying to time the market and max out on equity, now may be the time to sell. Leading into the next 12-14 months, close to election time, home prices are suggested to be at the top of the market. If rates do tick downward in next year's election year, which historical data since the 70's suggest will happen, I imagine we will see a small furry again. That furry containing those "waiting" right now, which means home prices likely take another jump between spring and summer, so fall of 2024 could be the sweet spot for maximizing equity.

 

WHAT‘S HAPPENING IN JACKSONVILLE?

DOWNTOWN

BEACHES

LOCO RELOCATION

  • Our city is certainly growing in all areas, and we have many people moving to our city and all around Florida. Over 300,000+ people moved to our state in 2022!

 

WHAT’S THE RENTAL MARKET DOING?

Overall, rentals are still moving in Jacksonville. However, many homeowners have been hit with a slight decrease in rental rates or rates staying the same based on the last few years of rates.

Here's why:

  • Many landlords offloaded homes in 2020-2022 in the hot market.

  • With this mass reduction, the rental market was squeezed.

  • Renters offered above the listed rental rate on many rentals.

  • Finally, like good ole supply and demand, the supply was low (due to homeowners selling their rentals) and rent skyrocketed.

A sad statistic, 30% of those homes were sold to select hedge fund investors (Wall Street Investors, not investors like you and me who own rental homes).

They automatically rented these homes, so new homes have re-entered the market, but they're owned, essentially, by Wall Street essentially.

Now, with inventory coming back and less owners selling, we have more rentals than we've had in almost 2.5 years, so the crazy pricing on rentals is also settling a bit.

 

WHAT CAN WE DO FOR YOU?

As always, we're, I am here to be your NE Florida Real Estate Expert + Go To Girl. 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!

Don’t forget, we rebate back 25% of our gross commission to our community heroes. Military Members, Medical workers, first responders, teachers, and clergy. We’ve given back over $500k since our inception.

 

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Care to learn more about our current listings, past buyers or take advantage of our cultivated tools, visit us at TheJordanGroupJax.com.