Jacksonville Housing: The Big Picture
Northeast Florida will always enjoy a somewhat steady housing market because of many unchangeable factors. The natural environment, including the Atlantic Ocean and the St. Johns River, is very attractive. Many companies are moving to town, continuing to diversify the industries here, plus the unemployment rate is low. We also enjoy a low cost of living, thanks in part to no state income tax. Our medical facilities are top notch, including Mayo Clinic, which is appealing to the many who retire here.
Economic indicators point to a healthy, vibrant real estate market in Northeast Florida
Looking at real estate during the past decade, it’s only in markets where local unemployment rates are high or rising — and where mortgage money comes with high interest rates — that housing values suffer significantly in downturns.
Jacksonville has a very strong employment base with below-average unemployment and above-average home price appreciation. This is more good news for those considering buying a home now. Northeast Florida is a housing market where buyers have the upper hand and the overall economic risks look reasonable. This was not the case just two or three years ago.
Local appreciation rate still strong
The appreciation rate for Jacksonville homes is 31st in the nation. Jacksonville homes appreciated 18 percent in the past year and 82 percent over the past five years. According to the National Association of Realtors, home sales during the rest of the year will be lower as the market works its way through an inventory and price imbalance. No one knows what 2007 will bring. The correction could end and prices rise again while opportunities for homeownership dwindle.
Investors who hoped to quickly profit on home sales, known as property flippers, for the most part have come and gone, at least temporarily, from the market. This is good news for anyone wanting to own a home in the Jacksonville area.