Davidson Realty, Inc.

Jacksonville Real Estate Trends in November – Realtor.com Forecasting Jacksonville as 6th Most Improved Market of 2017

December 27, 2016

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Posted by in News, Northeast Florida Market Trends

“Christmas is a season not only of rejoicing but of reflection’’ Winston Churchill

Reflecting on 2016, I remembered new relations with Cuba, several terrorist attacks, the Benghazi investigation, Wikileaks, Hurricane Matthew and the Presidential election. If you are a sports fan, Alabama won the College Football playoffs, Denver won the Super Bowl and then Peyton Manning retired. There were Olympic games in Rio, the USA won the Ryder Cup, and the Chicago Cubs won the World Series. It was an eventful year.

The Northeast Florida Association of Realtors market stats shows that 2016 was slightly better than 2015 with similar seasonal patterns for our sales. Pending sales are up 1.3% over 2015 through November and closings are up 3.8%.

The median sales price is up 8.8% year to date and the average sales price is up 7.3%. The inventory of homes for sale is down 20% to 8,349 homes. There is a 3.6 months supply of homes for sale. A five to six months supply is considered a balanced market. It was a good year for northeast Florida real estate.

Looking to 2017, Realtor.com is forecasting Jacksonville as the sixth most improved market of 2017, with prices expected to increase by 4.8 percent and sales shooting up 7 percent. Phoenix/Mesa/Scottsdale, Arizona is expected to have the most improved housing market of 2017. The west coast dominates the top five spots with only the Boston area from the east coast.

I am expecting a good year for our real estate market but there may be some interesting wild cards. First, interest rates have increased since the election. The economy and interest rates will impact how much buyers can afford. Interest rates might also impact the supply of homes because if you own a home with a low interest rate mortgage, you may not be able to afford the same size home with a higher interest rate. Potential sellers may not sell and since most of our housing inventory comes from resales, there may be less inventory available.

The second issue is the expected increase in first time homebuyers. Affordability is an issue now and increasing interest rates and shrinking supply will make it more difficult for first time homebuyers to buy. It seems they have been waiting longer to save the down payment and afford the homes that are available.

We welcome any real estate referrals you may have and will take great care of anyone you send our way. (904) 940-5000

We wish you and your family a Merry Christmas and a wonderful 2017!

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About the Author
Sherry Davidson
President of Davidson Realty

Since launching Davidson Realty in 1989, Sherry Davidson has built the firm to include nearly 60 agents and exceed $100 million in annual sales. She is known throughout the First Coast as an authority on all things residential real estate, having served on the Board of Directors for Northeast Florida Association of Realtors, Florida Realtors® (a division of the National Association of Realtors), and Builders Care (charitable arm of Northeast Florida Builders Association).

Thanks to Sherry’s leadership, Davidson Realty has been recognized as one of the state’s Best Companies to Work For (Florida Trend Magazine), as well as one of the region's Best Places to Work and 50 Fastest Growing Companies (Jacksonville Business Journal). Get to know Davidson Realty’s talented team of agents by clicking here or call us at (904) 940-5000.

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