We would like to take a brief moment to talk about some trends that are affecting buyers and sellers of Real Estate in Coastal Northeast Florida today. We will avoid for now the complicated charts and graphs that no one has the time to try and understand anyway. That doesn’t mean that conversations in the future won’t include some for graphic impact.
Firstly, we believe that for the most part people are generally happy with their circumstances, employment prospects and living arrangements. Northeast Florida is experiencing a robust resurgence from the recessed days from 2007-2012. No one can dispute the upward trend and recent acceleration in housing and rental prices. Many large corporations and international concerns are and have been considering Jacksonville for expansion or relocation. Many have already executed on those plans. The population influx as well as the subsequent confidence boost has spurred infrastructure spending and the housing industry and therefore employment. That being said people aren’t compelled to make a change while things appear good further affecting available inventory.
Secondly, the “nesting” seller is rightfully concerned that the replacement for their property will be priced higher with less favorable terms (higher interest rates). I would add that unless purchased new in the wake of the recession most homes may be in need of repairs and maintenance essential to selling your home at your expected price. There exists a blackhole from 2007-2012 when there was very little construction activity supported by a lack of sound financial reasoning. Therefore, even a home built in 2006 is now 12 years old and the value has just now reached the breakeven price point less exit costs. In addition, the increase of new homes competes directly with the ability to market a home that needs updates and repairs at the highest prices in 8 years. Older home owners are reluctant and likely feeling pinched for the funds necessary to competitively market their properties again tightening the inventory for prospective buyers. Newer home buyers since 2012 likely are enjoying some equity and greater mobility options however are staying put or relocating within the local market into yet another new home generally.
Not to worry, there is a silver lining. Doesn’t appear anybody wants to leave this beautiful area. Economic and demographic conditions in other states support the continued increase in migration to Florida and particularly the Coastal communities of Ponte Vedra Beach, Atlantic Beach, Neptune Beach and Jacksonville Beach, Florida. These communities still and likely always will represent an attractive value proposition to the typical buyer from colder, higher taxation States. Even those homes in need of a little “sprucing up” will present as superior options to the typical buyer looking to improve their financial and lifestyle eco.