by Brad Officer
on Wednesday, January 4th, 2017 at 5:04pm.
We just finished our Radio show for the week, and our topic was a hot one:
2017, The Year of the Move Up!
Why we believe 2017 is the move up year.......
First we have to understand demand is building.
MANY homeowners in Jacksonville have been STUK (4 letter word) for nearly a decade.
Not anymore: Prices are up, and principal balances are down!
Katy bar door! With these homeowners finally above water, MANY will choose to make the move this year.
MORE Buyers entering the market.
Millennials are coming of age with real income, real families, and real money. They are deciding to buy their first homes, but they are skipping the small starter homes and often times buying that next level up... which is good!
Fence sitters are getting back into the market. Many of these were frustrated shoppers from 2015 or 2016, but with the guaranteed rising of mortgage rates, many are re-entering the market again.
Reluctant renters back in the market in 2017: Jacksonville saw some of the highest numbers of foreclosures, bankruptcies, and short sales in the country. Many of those people are renting, but are now fully capable of buying again. (waiting period 2-4 years in most cases). They are getting back in the market and ready to take advantage of today's buying opportunities.
Second: Opportunity of the LAST of the LOW mortgage rates!
The last of the great low rates that we've seen EVER. Maybe the last of the low rates for this entire generation? Who knows, but the facts are the facts. Rates are historically low.
Surprise! The rates are GUARANTEED TO RISE and are rising!
Fed just raised the rates at the end of 2016.
Fed states to expect more “systematic” rate increases in 2017, maybe 3?
Rates rising has to happen, especially after a near decade of holding them artificially low.
Buying Power is good for ALL!
You (the homeowner) have great buying power with rates this low. Take advantage now!
Your potential Buyer for your home also has great buying power.... this is good for you (the home owner)! More people can afford to buy your house... for now.
Third point is the housing appreciation WILL SLOW.
Your Home’s Value increases may have hit near the top of the arch for the foreseeable future.
The bottom on the recent cycle was early 2012.
We’ve seen price increases steadily rising since 2012.
However the past several years have seen higher increases.
This rate of appreciation CAN'T continue.
At some point we hit the appreciation point were either:
our local economy has to push forward, creating even more jobs, creating even more housing demand locally with more qualified potential buyers.
OR, wages have to go up / inflation happens.
ARE we there now?
Either way, your home's value is high now, and it could be an ideal time to cash in.
Fourth point is the X factor: Jacksonville Growth!
Jacksonville is seeing VERY Positive signs.
Trulia just ranked Jacksonville as one of the healthiest markets for employment opportunities.
Jacksonville posted a 3.8% job growth rate in 2016.
According to the popular tourist website TripAdvisor, Jacksonville is among the top 10 “destinations on the rise” for travelers.
FORBES just ranked Jax as the #2 city people are moving to! Unemployment rate at 4.4%.
Have you seen all the signs of growth?
Town Center expansion.
Nocatee explosive growth.
Medical centers expanding.
Commuting time is rising. (people have jobs)
2 new Amazon facilities.
Large retailers like TopGolf, Ikea, and Tesla are moving in.
New homes are being built everywhere again.
Older urban neighborhoods are seeing renovations happening on almost every block.
All in all, 2017 is shaping up to be quite the year! If you are one of the lucky, you can take advantage of this market to move up to the home you've been waiting for or move locations to an area that better suits your lifestyle. Either way, we are here to help!
Thank you in advance for Sharing!
Give us a call at 904-234-5196 if we can help you buy or sell real estate in Jacksonville, FL.