If you’re wondering if now is a good time to sell your home, the answer is– it depends. Yes, that is the most annoying response, but keep reading and you will be able to decipher a clearer answer for yourself, in your unique circumstances for Jacksonville Beach FL Real Estate Trends.
There was a lot of change to the real estate market between the months of July to October. As we are coming out of a heavy seller’s market, we are entering a stronger buyer’s market. These new trends are here to stay for, at least, the next several months and can be attributed to the following factors:
- Interest Rates. The Federal Reserve will continue to raise interest rates until inflation is under control. We believe there are 2 more rate raises in the pipeline. Conventional rates are currently running between 6% to 7% depending on the type and length of mortgage. As we detailed in our last market update, there are programs available to help reduce these interest rates.
- Economy. Buyer confidence is questioned with fear of a mild recession being predicted. Some economists believe that this recession has already begun and will peak in the next 6 months. Others anticipate a recession to come in the next few quarters with a 6–9-month duration. Either way, the impending recession is predicted to be mild due to people, generally, having cash reserves from all the money poured into the market during the height of the pandemic.
- Holidays. Beginning in November, most buyers are on hold for the holiday season. From Thanksgiving through New Year’s, it is a routinely slow time for real estate sales.
- Absorption Rate. The current absorption rate is at 3 month’s supply and will likely increase to 3.5 or even 4 month’s supply by the end of the year. An absorption rate communicates the length of time it would take for all the currently listed homes to sell without anything new being added to the market. An increasing absorption rate tells us that inventory will rise as homes are sitting on the market longer.
Sellers, ask yourself:
- Do you need to sell now, or can you wait 6-8 months?
If you need to sell your home by January or February, get on the market now as sell prices will be decreasing between now and then. If you can wait 6-8 months, it’s better to hold off.
- Are you able to rent your home while you wait?
Interest rates are going to stay high for the next 18 months, which will maintain the buyer’s market. If you’re able to rent your home during this time and sell later, you will be in a more advantageous position. Remember that we live in a desirable location where people love to vacation. Short-term and long-term rentals are both viable options.
- Is your home priced competitively?
When it comes to choosing a list price for your home, you want to “skate to where the puck is going to be, not where it is currently”. Sell prices will be decreasing over the next few months, which means that current sell prices are going to be peak prices. If you are motivated to sell now, then price your home under the current sell price of comparable homes. List prices are higher than what properties are actually selling for.
Buyers:
We are entering into a buyer’s market, which means that this could be a great time for you to buy. Here are a few things to consider:
- Negotiating Power.
Right now, you have fantastic negotiating power, and this will only continue to strengthen over the next few months. Don’t be shy to ask for what you want. There’s a good chance you may get it.
- Financing.
If you can pay cash or only need to borrow a small sum to make a purchase, this is your time to shine. If you find the perfect house– strike now. If financing is a hindrance for you, check out our previous blog post with valuable information to help circumvent that issue and lower your monthly mortgage rate.
- HELOC: As a homeowner, you will also be eligible for a HELOC (home equity line of credit). A HELOC gives you access to funds for whatever you need, as it is not limited to home-related expenses. Many people use a HELOC to purchase an investment property. Or, it can simply be a safety net to know that the money is available should you need it.
We would love to help you buy or sell your home in this changing market. Please reach out to us for assistance.
