The real estate market for Northeast Florida is as hot as ever. As evidenced by the February 2018 Riverside Avondale Stats released by the Northeast Florida Association of Realtors recently. As was the case in January, the 2018 year has started off with a flurry of sales. Lots of new buyers, lots of new Realtors, but not as many homes. I do believe the builders are having a hard time keeping up with demand as skilled workers are in high demand and can afford to jump from job to job.
February 2018 Riverside Avondale Stats
These show a strong economy in our area. New Listings in the Northeast Florida region increased 10.2 percent to 3,200. Pending Sales were flat at 2,358. Inventory levels fell 13.0 percent to 7,713 units. Prices continued to gain traction. The Median Sales Price increased 11.4 percent to $215,005. Days on Market was down 14.1 percent to 73 days. Sellers were encouraged as Months Supply of Inventory was down 15.8 percent to 3.2 months. New listings doubled in our area, prices are up, but inventory continues to shrink. Now is a great time to put your house on the market, Jacksonville is growing with lots of new jobs. Our unemployment level is below the national average at 3.1%. This is all leading to strong February 2018 Riverside Avondale Stats.
The Federal Reserve is promising to raise rates 3, maybe 4 times this year, so that will mean that the cost to acquire a mortgage will rise, but its not likely these jumps will be more than %0.25 per rise. Why? Because GDP growth, while higher than what we saw in 2016, is not at 5, 6, or 7%, which would really mean inflation would be rising. You would see this most likely at the grocery store. Rises in everything you pay for when putting food on the table at night would cost a lot more, but that is just not happening in this economy.
Manageable real estate market
Yes rates are going to rise. But, if the rates rose by 0.85 percentage points over the next year (as some predict), the typical monthly mortgage payment would rise from $804 to $910, a 13.3 percent increase. However, when the projection is adjusted for inflation, it’s still 36.4 percent below the all-time high of $1,263 set in June 2006. In Jacksonville last year, home values rose by 9% with an expected 8-10% rise this year as well. If the median home is rising $20,000 a year, are you concerned over paying $1200 extra per year in mortgage costs? Looking for a home to buy in Jacksonville? What is your home worth?
Here is some information about our local Riverside Avondale Ortega Market: