Spring seems to be trying to come early this year to the Jacksonville area. All of the expected signs are there...sunny and warm 80 degree daytime temperatures...sun setting later each day...crickets and frogs make their nightly chorus...pollen coating everything...and sellers and buyers are starting to get VERY active. A good sign for sure!
So what's happening? Why is the market suddenly getting active ? Is the housing "bust" over?
We think a number of factors are contributing to the launch of an early spring season.
- INVENTORY LEVELS DECREASED: The number of homes for sale have DECREASED for the first time in 18 months. This is HUGE. If memory serves me correct (my ECON class was @ 7:30AM and I admitedly slept through a "few" sessions), economics 101 says the according to the law of supply and demand, when supply decreases, value increases. Now, don't get too excited. A good part of the reason inventory has dropped is because sellers have either elected to withdraw during a down market or have decided to place their home into property management. However, the number of SOLD has also gone up! This is most likely a "blip" in the market as it goes through seasonal adjustments.
- DISTRESSED PROPERTIES INCREASING: About 30% of our existing market inventory are either short sales or foreclosures. A "short sale" is essencialy a pre-foreclosure or a sale in which the lender has agreed to allow the home to sell for LESS than the existing balance of the loan.
- BUYERS WANT BARGAIN BEFORE MARKET REBOUNDS: Like sharks in the water, buyers are smelling blood. Savvy buyers are taking advantage of the current market conditions to purchase a home with substantial savings. As inventory levels drop, more buyers will be jumping on the bandwagon to get theirs before the music stops.
For more information about the market or to find or sell your home, call us today at 904-449-3504.
Happy House Hunting!
~Rich
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