Jacksonville Real Estate Market Trends
The Jacksonville real estate market took a substantial hit a few years ago, as did the real estate market throughout all of Florida. Although real estate prices across the country as whole fell during our last recession, Jacksonville home prices, as well as those throughout Florida, fell more than most. The reason for this was that real estate values had been appreciating at a much faster than normal rate for the ten year period leading up to the recession. In real estate terms, this is often referred to as a “bubble”—as in a bubble gum bubble that keeps getting bigger and bigger until it eventually bursts. When the bubble does burst, home values plummet. According to one report, Florida has the second largest peak to decline in home values at 43.5 percent; however, other statistics put the decline from peak at closer to 35 percent. Regardless of which data is correct, everyone agrees that Jacksonville real estate was dramatically affected by the recession. It appears, however, that the market has bottomed out and that Jacksonville home prices are slowly increasing once again.
Although the recovery process is slow, the real estate market throughout all of Florida, including Jacksonville, is starting to trend upward. Including distressed sales, Jacksonville home prices saw an eight percent increase in December of 2012 compared to the same month in 2011. If distressed sales are not included, the increase is price drops to four percent; however, data continues to show steady increases such as this. From November of 2012 to December of 2012, for example, Jacksonville homes prices increased by 1.3 percent. The figures for inventory in Jacksonville show a slight decrease from January of 2013 to February of 2013; however, February has historically not been a popular month to list a home.
The median price for homes among Jacksonville real estate sold over the last 12 months is $92,900. Compare this to the median list price of $158,500 for a single family home in Jacksonville for the month of February 2013 and it becomes clear that home prices are trending upward. The median list price shows a 5.66 percent increase from the previous month, further pointing to the upward trend in home prices.
Another important indicator of how a real estate market is doing is the number of days a listing typically stays on the market before selling. As of February 2013, Jacksonville real estate stays on the market an average of 63 days before selling—significantly fewer days than the national average.
For the time being, the Jacksonville real estate market continues to be a buyer’s market. Although home prices are slowly trending upward again, they remain historically low. For example, a buyer looking for a three bedroom home can still find numerous selections for under $100,000. Four bedroom, three bath room homes start at around $150,000 and go up, depending on condition and location.
Although home values may not reach what they were at their pinnacle anytime soon, experts generally agree that Jacksonville home prices will steadily increase for the foreseeable future. For this reason, anyone who is considering purchasing a home in Jacksonville, Florida, may wish to do so in the near future in order to take advantage of the still low prices.