Jacksonville, Florida –This is the first time in almost half a year that mortgage interest rates have fallen below 7%. For this reason, real estate agents are sounding the alarm that market competition will become even more intense in 2024.
According to the Northeast Florida Association of Realtors (NEFAR), homes in Jacksonville have historically remained unaffordable, with a median sales price of about $390,000.
Prices in Jacksonville will likely never return to their previous levels, but interest rates are finally coming down. This may mean homebuyers can expect a more competitive market.
Related: Northeast Florida home prices rise in November as holiday market slows: Report
“I say this all the time, and people probably hate me. But the best time to buy was 25 years ago, and the next best time to buy is now, and it’s actually Yes, I think we will see significant interest rate increases as rates come down,” said Laila Hassan of Engle & Völkers.
Lower monthly payments may be welcome news for homebuyers, but it also means more competition. Hassan said more people have been moving to Jacksonville in recent years, despite the current downturn in the market.
“Interest rates are gradually coming down and I think that will continue to be the case over the next few months. I definitely think we will see a bidding war again,” Hassan said.
NEFAR’s latest market trends report also shows no signs of a decline in home prices. Home prices rose 5% in November.
St. Johns County has the highest median sales price at $510,000.
“As you know, St. Johns County has one of the best school systems in the entire state, so people are paying a premium,” said 2024 NEFA President Rory Durbin.
If you’re looking for more buying power, real estate agents suggest waiting until interest rates drop further in 2024, but now is the best time to buy a new home as incentives expire in early 2024. It might be the perfect time.
more: Housing prices in Northeast Florida are historically unaffordable.Housing market sees significant seasonal slowdown: report
“Constructors have very good incentives right now, but they don’t expect it to last long term. So these incentives also get them through the holiday season. If so, I think this 3% and 4% range will phase out,” Durbin said.
The Fed has indicated it plans three more rate cuts in 2024.
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