Spring is in full swing and so is the Jacksonville Beach real estate market update for May 2023. Complete with bidding wars, bank failures and rising interest rates. Here’s what you need to know this month in the Jacksonville Beach real estate market update.
Bidding Wars Return
Homes are going under contract quickly and often after receiving multiple offers. This creates a real estate market update in which home prices are creeping back up. The closed over list prices are increasing. Absorption rates are dropping again. Meaning, the length of time it would take for all the currently listed homes to sell without anything new being added is decreasing. The narrowing real estate inventory is fueling a higher demand which results in the return of bidding wars.
Another Bank Failure
The real estate market update is impacted by failure of another U.S. bank—First Republic. The deposits and most of the assets belonging to First Republic have now been acquired by JP Morgan Chase, as announced publicly on May 1st
Rising Interest Rates
The bank failure of First Republic was an unforeseen factor in the market that has subsequently contributed to higher interest rates. Banks raise interest rates in an effort to curb inflation. When inflation decreases, the real estate market reacts better. Right now, we’re seeing interest rates rising right alongside of rising home prices. When interest rates drop, even slightly, action in the real estate market will rise quickly.
The pace of the market is gaining speed. Interest rates are volatile. Whether you are looking to buy or sell, it is essential to have a real estate professional on your side to navigate these decisions with you and offer insider wisdom. We are here to help you. Reach out to the Fluid Realty team today, wherever you might be on your real estate journey.
The Fluid Realty Team is Jacksonville’s top real estate group and local boutique brokerage. We provide a full-service experience with the best realtors in the area. Our expertise includes luxury beach real estate within the four Beaches of Jacksonville, FL: Atlantic Beach, Neptune Beach, Jacksonville Beach, and Ponte Vedra Beach.
