Florida Real Estate Trends
As 2015 comes to an end, people considering purchasing a home in the Jacksonville Florida area please feel free to reach out to me at (904) 535-0544 to discuss the current Saint Augustine, Ponte Vedra and Jacksonville, Florida Real Estate market. In the meantime, I’d like to share some information regarding the upcoming Florida Real Estate trends for 2016 and what to expect.
7 Florida Real Estate Trends to Keep an Eye On for 2016:
- Interest rates – the consensus of opinion is that interest rates are going up. Most people believe that the increases will be minimal in 2016. The fed raised the rate by .25% last week and it looks like they intend to maybe increase every other quarter.
- Home prices – we are starting to see home prices go up, but gradually. Not the huge increases we saw before the market crash in 2007. Florida seems to be the state with the most consistent appreciation of around 3.5 to 5%. However, new construction activity is very high. Most builders in Nocatee (a master planned community in Ponte Vedra, Florida) are increasing the price of a new home for every 3 to 4 homes the builder puts under contract.
- Green and smarter homes – Buyers are looking for homes that have energy saving features. Newer Air conditioning and heating systems are more energy efficient and cost less money to operate. So if you are considering updating your home, investing in programmable thermostats and controls that can be adjusted on your smart phone are features buyers are looking for.
- Cheaper to Buy than Rent – Rental properties are still in high demand and rental rates are continuing to increase. Therefore, purchasing a home and locking in the amount of your monthly mortgage payment is still a very smart financial decision.
- Word of Mouth when finding your Realtor – 75% of buyers and sellers ask someone they know who recently purchased or sold a home for a recommendation of who to use. Google and Zillow reviews are very important to an agent. Social media also plays a big role in connecting Realtors to their past clients and these clients friends.
- Home design trends – Quartz countertops are becoming increasingly more popular because of the variety of choices, low maintenance and antibacterial properties. Larger pantries are in due to bulk purchasing at stores like Costco & Sams. Dedicated home offices are increasing, instead of using the dining room table or a corner in the kitchen. And open floor plans where the kitchen and family rooms are the central focus of the house will continue.
- The suburbs aren’t dead – The average age of a first time homebuyer is 33. This is due to delaying marriage and families. 2007 saw young adults graduating from college and not being able to get a job in the field they studied. As the job market has improved these same young adults are now finally leaving home or moving out of their first apartment. They are now finally creating new family units and will be looking at moving to the suburbs. The millennials; ages 21-34; are going to be the largest group of home buyers in 2016.