My Jacksonville Real Estate Predictions for 2016

Jacksonville Florida Real Estate Podcast with Brad Officer

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Today, I want to go over my 2016 real estate market predictions. In order to understand where we're going, first you have to know where we're coming from.

2015 had the highest volume of sales in Northeast Florida that we've seen since the bubble years. Last year, 26,607 properties sold. That is an incredibly high number of transactions!

Not only did the number of transactions increase, but home values are up as well. Overall, our market saw an average of 6.9% appreciation, which is way over what a normal average would be.

In 2016, I believe the volume of home sales will be somewhere in that mid-20,000 range, with 24,000 to 26,000 transactions. However, we should see more modest appreciation in the 3 to 5% range.

I also predict that 2016 will be the year of the buyer. The Fed started raising interest rates at the end of 2015, and they should continue to increase throughout 2016. I expect interest rates will be at 5.25% by the end of the year, so buyers will be trying to lock in low rates this year.

Additionally, here in Jacksonville, a lot of our renters put 50% of their income into their lease. In short, most renters are paying way more money than they should. These renters could probably buy a house for less money than what they're paying to rent it.

Finally, Jacksonville has an incredibly young population. Millennial buyers should be out and about in 2016 looking to make that first real estate purchase. These three factors combined make 2016 the year of the buyer.

However, all this market activity still makes 2016 a great year to sell. If you have any questions, give me a call or send me an email. I would be happy to help you!