Market Update: Jacksonville, Florida, Duval County

Have home prices dropped?

If you've seen those headlines that say “home prices have dropped”, don't panic. Remember to put it in context, and look at the big picture! April, May and June of 2022 were literally 3 of the best months for home prices in the history of the American housing market. So yes, home prices have dropped, but they’ve only dropped slightly from all-time highs. Take a look at the chart below to compare markets stats from today vs. 1 year ago.

Most notably, the number of active listings and months supply of inventory have increased dramatically. However, the fact that we still only have a 2 months supply of inventory keeps us in a seller’s market. To have a balanced market, there should be a 5-7 months supply.

Why is there a low supply of homes?

The reason there has been so little supply in the last few years is due to the higher interest rates. Plenty of people would love to sell their homes and cash out on all that equity, but why would they sell when they have a sub 3% interest rate? If they sold their house, they would have to buy in at a 6-7% interest rate! And if they sold, where would they go? Prices have gotten so high that most people cannot afford to move somewhere else. Thus resulting in low supply.

Why has supply increased so much in the last year?

People are starting to come to terms with the fact that rates might not go back down to where they were. Why would you wait for rates to come down, if there’s a chance that they never do? 6% might be the new 3%! Many buyers and investors are realizing they can buy now, get a better deal, and if rates do drop, they can refinance later.

Here are 3 Things you need to know this month:

1. For the first time in 10 meetings, the fed did not raise rates! This is a good sign…it means the fed sees inflation getting back to where it needs to be!

1. While tappable equity is down from last year, it is still near an all time high.

1. Summer is a great time to sell! Competition is high, and bidding wars are common. If you want to know what you could sell your home for, reach out to me.

If you are ready to start your home search, reach out to me today!

(904)-874-0009.