JACKSONVILLE, Fla. – It’s the first time in almost six months that mortgage rates are below 7%. That has realtors sounding the alarm on a more competitive market in 2024.
Homes in Jacksonville remain historically unaffordable with a median sales price of about $390,000, according to the Northeast Florida Association of Realtors (NEFAR).
While prices are likely never coming back down to where they used to be in Jacksonville, the interest rates are finally coming down — which might mean homebuyers can expect a more competitive market.
RELATED: Northeast Florida housing prices rise in November as market slows during holiday season: report
“I always say this, and people are probably going to hate me. But the best time to buy was 25 years ago, the next best time to buy is now, it really is. I think that once you see those interest rates coming down, you’re gonna see a major spike,” Laila Hassan of Engle & Volkers said.
A lower monthly payment may be welcome news to homebuyers, but it also means more competition. Hassan said even with a slower market right now, more people are moving to Jacksonville and have been over the last few years.
“I think with interest rates coming down and trickling down, you’re gonna continue to see that over the next few months. I think you’ll definitely start seeing those bidding wars again,” Hassan said.
NEFAR’s latest market trend report shows no signs of home prices decreasing either. In November, home prices jumped by 5%.
In St. Johns County, the median sales price is the highest at $510,000.
“As you know, people also pay a premium because St. Johns County has the best school system in the entire state,” Rory Durbin, 2024 NEFA president, said.
If you’re looking for more purchasing power, realtors suggest waiting for interest rates to come down even more in 2024, but now may be the best time to buy new construction homes, with incentives expiring in early 2024.
“Right now the builders have really good incentives, they are not anticipating that to stay long term. So, those incentives are also carrying us through the holiday season. I think that those three and 4% ranges with the new construction are going to phase out.” Durbin said.
The Federal Reserve has signaled three more rate cuts to look forward to in 2024.