Florida is known for being a rather appealing state for many people in the US. Besides having a warm/tropical environment, there are usually many opportunities for the people who move there.
Jacksonville, specifically, is considered an excellent place to live for those who want to access a solid job market and a reasonable cost of living compared to other cities or states in the US. As a property owner, you may be wondering if you should partner up with a real estate agent and start investing in properties in the Jacksonville housing market.
It's essential to note that the Florida market is expected to change in the near future, and Jacksonville is likely to go down that route too. You must understand why and how housing prices in this city are changing before you make any investment decisions.
If you want to learn more about home prices and the Jacksonville housing market in general, this is the page for you. Jacksonville has been considered a seller's market for a while now; will that change? Let's find out!
There are many factors and "trends" that can affect house prices in any city, including Delaware. You should always keep them in mind before investing, as they may tell you if this city is the most appropriate one for your goals.
Median Sales Price
The median home sold price for Jacksonville is currently $295,000, which implies a 0.7% increase compared to 2022. While the difference in median price between last year and this one isn't too big, it still represents a competitive market in the area.
As for the median listing home price, we have an average of $304,900.
Number of Homes Sold
Here's where we see a significant difference from last year. Overall, there were approximately 1,491 homes sold in March 2023, which is down from 1,775 last year. This represents a 16.0% decrease.
Median Days on the Market
Finally, we have a significant increase in median days on the market in FL Jacksonville. According to research, the average property in Jacksonville, FL sold after 52 days on the market compared to last year, which is a significant increase from the 21-day rate we had before.
This increase represents a 31-day increase from last year. Even though homes in Jacksonville, FL, sell after so many days, there are also other data that suggests the housing market there is somewhat competitive.
The Jacksonville housing market is experiencing a lower grade of competitiveness, but it still remains somewhat competitive this year. Overall, the sale-to-list price experienced a drop of 3.6 pts compared to last year, setting the number at 96.9%.
About 16% of homes in Jacksonville, FL, were sold above the list price, and finally, there were approximately 32.9% of homes with price drops in the area.
Migration and Relocation
According to Redfin, approximately 23.27% of buyers in Jacksonville were looking to move out of the city, whereas 73% wanted to stay in the metropolitan area. Some people are moving to Jacksonville from the following cities:
- Washington, DC
- New York, NY
- Miami, FL
- Los Angeles, CA
- Chicago, IL
Common Factors Affecting the Market
There are a few factors that tend to affect the market conditions of every city in the long run. While this doesn't mean that the market in Northeast Florida will change completely because of that, these are factors that are nice to keep in mind.
In essence, a city's demographics will make it easier for anyone to evaluate which properties have a higher demand in the area. A significant change in a city's demographics could affect its housing market.
Typically, a city's demographics are based on:
- Growth Potential
- Migration Status or Patterns
As with most other cities and states in the U.S., Jacksonville's market is often affected by the general economy. There are a few indicators you should be aware of if you want to evaluate whether a certain city has good market conditions or not:
- Manufacturing Activities
- Prices of Goods and Services
- Employment Ratio
The lower the buying power the average population has, the harder it will become for them to file for a mortgage or buy a home. Keep in mind that any changes in the country's economy could also affect the housing market in Jacksonville.
Drastic events like the COVID-19 pandemic were known to affect all housing markets throughout the country, so these are always essential to keep in mind.
Any government interventions could cause changes in the city's housing market. These factors may include decisions, tax credits, subsidiaries, and more.
Being able to understand government interventions and how they affect us is essential if you want to predict how safe the housing market of a particular city is.
Mortgage is a big part of many people's lives. Typically, homes are sold for hundreds of thousands of dollars or even more. All of this makes it difficult for a person to buy a house. Even if they do buy the house, they would have to commit to making mortgage payments monthly, and depending on the current market conditions, the mortgage rates could be higher than usual.
Even though the median home price for Jacksonville, FL, isn't considered too high compared to other markets, there are some home prices that greatly exceed the 'median.'
Will the Jacksonville Real Estate Market Crash?
Based on what we've evaluated so far, it can be tricky to tell whether the real estate market in Jacksonville, FL, will crash or not. According to different experts, the market is likely to keep slowing down over the following years, although there's a growth potential, as the average home values have increased compared to last year.
Many people are speculating and 'predicting' housing market crashes all over the country. However, considering the fundamentals of Jacksonville's market remain strong, it's unlikely for a crash to happen. Remember that a slowdown in the market doesn't necessarily mean that there will be a crash.
Remember that the median sale-to-list ratio, while it dropped, it still remains high, which implies the overall market is still strong. The slowdown could mean that it may take some time for the market to pick up its pace, but it's safe to say that the current market conditions in Jacksonville, FL, are promising for both buyers and sellers, making a crash highly unlikely.
Here are other factors that may contribute to the argument that the real estate market in Jacksonville, FL, is still going strong despite the recent changes:
Fastest-Growing Florida Neighborhoods
About nine neighborhoods from Duval County are included in a list of the 21 fastest-growing neighborhoods in Florida. The state, in general, has had some of the strongest appreciation rates in the US over the past decade, making it one of the best long-term real estate investments for people in the country.
Now, considering that nine neighborhoods from Duval Country are among the fastest-growing neighborhoods, it's safe to say that there are a lot of opportunities for property owners who want to invest in this city.
Higher Potential Returns
Landlords and property owners will greatly benefit from Jacksonville's potential to deliver higher ROIs. Considering the current state of the market, you could argue that there will be a higher demand for homes in Jacksonville, FL, so investing here could give you higher returns as time passes.
General Positive Predictions for the Future
Many financial investors claim there's a bright future for Jacksonville, FL, despite what recent data has shown. There's a massive expansion going on in suburban neighborhoods, and the authorities are also emphasizing downtown revitalization. All of these factors can lead to:
- More population growth
- Higher rental rates
- More investment opportunities for property managers.
Let's summarize everything we just mentioned:
Home prices are increasing, which suggests that the market is still thriving and has growth potential. Keep in mind that the higher the price of the average property, the more likely it is that people are desperate to live in the area.
Moreover, considering there's a shortage of available homes for sale in Jacksonville, FL, it's safe to say that home prices will keep rising. Even though new houses are being built, they're not enough to cover the shortage, so you can expect the prices to keep rising.
Currently, the Jacksonville, FL, market is considered to have growth potential, and considering the current shortage of homes, you can expect higher prices. Now, it's hard to tell whether these high prices will stay up for too long.
We can safely say that the market is great for both property managers who want to invest in real estate in Jacksonville but also for sellers who are looking to make good money. If you're willing to invest in a decent property and rent it, you could see great returns over time.
Local Housing Market Statistics
Thanks to the Northeast Florida Association of Realtors, we have a few interesting statistics about Jacksonville. If you're interested in investing in FL Jacksonville, then keep the following facts in mind, as they will help you make a smarter decision in the future.
- The number of new listings was down by 8.7% compared to last year, and closed sales also dropped by 28.8%.
- The Months' Supply of Inventory (MSI), increased to 2.3 months, which suggests a 171.4% increase compared to last year.
- The average rent for a one-bedroom apartment in the area is $1,300, which suggests a 2% increase compared to 2022. On the other hand, the average rent for a two-bedroom apartment got up to $1,450, which suggests a 2% decrease compared to last year.
- Popular neighborhoods in Jacksonville to invest in include: Chimney Lakes, Oceanway, Beach Haven, Riverside, Forest Trails, and East Arlington.
- Mandarin is considered the most expensive neighborhood in Jacksonville, considering its median listing home price of $619,9K. On the other hand, Mid-Westside is considered the most affordable neighborhood, with a median listing home price of $132K.
- According to Realtor.com, Jacksonville, FL, currently hosts 250 public schools rated "Good" and higher. Moreover, there are about 207 private and charter schools in the area.
Jacksonville Housing Market Predictions
What's the forecast for Jacksonville's real estate market in 2023-2024? Let's take a look at a few factors:
Based on what we know, sales are taking longer to sell, so the list of available homes is increasing. All of this leads to an increase in Jacksonville's months' supply of inventory.
As mentioned before, we're currently going through a 'slow' period in the market, and it will likely keep slowing down in the short term.
However, the growth rate is still expected to rise even though the current market conditions suggest we're in a slow period.
Summarizing, we can say that Jacksonville is facing quite a few challenges (and will continue to face them in the short term). However, the forecast for the following year looks promising for most people and suggests there's a lot of growth potential.
Buying real estate can be one of the most important decisions you can make in your life. You must work with a professional if you want to ensure you're making the right decision.
Overall, Jacksonville is going through a rather complex situation. Even though it's facing a few challenges and it's considered to be going through a slowdown, it still has quite some growth potential, which may make it an excellent opportunity for all investors.
There are many factors Jacksonville has in its favor, including economic growth, long-term returns, and even the beach factor that everyone loves.
We can say that Jacksonville represents a great investment opportunity for you today.
Is the Current Median Sales Price in Jacksonville Good?
It depends on your goals. Currently, the median sale price in Jacksonville increased by 0.7%, which suggests that the value of the average home is getting higher, which is excellent news for those looking to sell.
If you're looking to buy, this may also represent a good opportunity, as long as you're willing to wait for long-term returns.
Is It a Good Idea for You to Invest in the Jacksonville, FL, Real Estate Market?
Yes! Jacksonville is currently a great place for people to invest in. However, you should evaluate all your options carefully before making any important decision.
How Competitive Is the Real Estate Market in Jacksonville?
It's considered to be 'somewhat' competitive. Even though there are a few factors that could benefit buyers, the slowing rate of the market suggests that buyers could have the upper hand in some cases.