3 Factors Attracting Buyers Back to the Jacksonville Real Estate Market
It is common thought to interpret our current real estate market as being “slow”. While there is some truth to that, it is also true that it feels slow as compared to the market that we recently came out of. However, this comparatively slow market will begin to sense a shift as buyers are enticed back by 3 factors: increasing home inventory, anticipation of lower interest rates and decreasing cost of building supplies.
Jacksonville Home Inventory
Although new listings are meager, the inventory of homes on the market is creeping back up. We currently have double the home inventory that was available at this same time last year. Sellers may be reluctant to list their homes due to fear of it sitting on the market for “too long”, but an average length of time on the market right now is 60 days. For people more seasoned in real estate, we know that this is a very reasonable amount of time for a home to be listed. It is not something to be avoided. It is only when compared to the super-hot seller’s market of early 2021 that it seems to be a drag.
Anticipation of Lower Interest Rates in Jacksonville FL
Real Estate expert Barry Habib is predicting that the Feds will continue to steadily increase interest rates until a final hike in mid-March. He predicts that we will then see interest rates begin to decrease in the spring. Although the lower interest rates will then lure more buyers onto the market, he advises that “the time to buy assets is when they are out of favor”. Some of the reasons for this were described in our article, The Advantages of a Slow Real Estate Market.
Decreasing Cost of Building Supplies in Jacksonville Beach FL
The graph below shows the leveling out in prices for building supplies. According to Manning Building Supplies, the building supplies for a standard 1,500 sq ft home would have cost just under $9,000 in January of 2018. That number sky-rocketed up to almost $31,000 in March of 2022. In just 10 months time, we have seen that price settle back down to $9,577 as of this month- January 2023. This drastic reduction in the cost of building supplies is coming hand in hand with an increased inventory in lumber yards as new home construction projects are stalling. Building supplies are now both available and reasonably priced.
Best Realtors in Jacksonville Beach FL
Reach out to us today if you’re a buyer ready to take advantage of the opportunity to purchase an “out of favor asset” or if you’re a seller undeterred by the moderate amount of time that your home will likely take to sell. Alternatively, you may be eager to buy or sell after interest rates begin to drop. If that’s the case, we would love to be able to help you get prepared for when that time comes. The Fluid Realty team is here for you wherever you might be on your real estate journey.
