Jacksonville, FL Real Estate Market: July 2024 Insights

The real estate market is a dynamic environment that is constantly evolving. For prospective buyers and sellers in Jacksonville, Florida, keeping abreast of the latest trends is crucial. In this blog, we will delve into the July 2024 market statistics for Duval County, examining median sales prices, inventory levels, mortgage rates, and the competitive landscape for both buyers and sellers.

Current Market Overview

As of July 2024, the median sales price in Duval County stands at $345,500. This represents a 1.6% increase from the previous month, June 2024, and a 4.7% increase year-over-year from July 2023. This stabilization indicates a return to more typical home appreciation rates, moving away from the previous highs of 20-30% annual increases.

However, it's important to note that closed sales have experienced a slight decline compared to last month. The average days on the market have also increased, suggesting that homes are taking longer to sell. The average list price received is approximately 97.3% of the asking price, which highlights the competitive nature of the market.

Pending Sales and Inventory Trends

As we transition from summer into the fall, pending sales have decreased by 21.2%. This translates to one less home selling out of every five on the market each month. Despite this decline in pending sales, the active inventory has surged significantly, increasing by 99.2% year-over-year and 12.5% from the previous month. Currently, there are 14.6% more homes available for sale compared to last month, providing buyers with more options than they had previously.

The Impact of Mortgage Rates

One of the most significant factors affecting the real estate market is mortgage rates. Currently, the rate for a 30-year fixed mortgage is approximately 6.37%. This figure has been steadily decreasing since its peak in September and October of the previous year. Lower mortgage rates can ease the financial burden on buyers and stimulate market activity.

Case Study: New Construction Financing

To illustrate the impact of current mortgage rates, let's consider a recent case involving a family who closed on a new construction home in Duval County. Their loan amount was just under $300,000. Initially, with a 6.44% interest rate, their monthly payment would have been around $2,300, including principal, interest, insurance, and HOA fees.

However, the builder offered a 2-1 buy down on the interest rate, which significantly reduced their payments. For the first year, their interest rate was set at 3.99%, bringing their monthly payment down to approximately $1,852, saving them $366 each month. In the second year, the rate increased to 4.99%, resulting in a monthly payment of $2,031, still saving them $187 compared to the original rate.

Over the life of the loan, this buy down could save the family approximately $23,000. Additionally, the builder contributed $9,500 towards closing costs, making the overall financial package very attractive for the buyers.

Competitive Landscape for Sellers

For homeowners considering selling their property, the current market dynamics present unique challenges. With new construction homes becoming increasingly popular, sellers must be mindful of their competition. New homes often come with modern amenities, warranties, and the appeal of being move-in ready, which can be highly attractive to buyers.

Sellers need to evaluate how their home compares to new construction options. A $300,000 home might demand a monthly payment of nearly $2,600 when accounting for property taxes and other costs. Buyers today are more budget-conscious and scrutinize every dollar, making it essential for sellers to position their homes effectively in the market.

Conclusion

The Jacksonville real estate market is navigating a transitional phase with a mix of rising prices and increased inventory. Buyers have more options at their disposal, aided by decreasing mortgage rates, while sellers must adapt to a competitive landscape dominated by new construction offerings. Understanding these trends is vital for anyone looking to buy or sell in this vibrant market.

For personalized assistance in navigating the Jacksonville real estate market, feel free to reach out directly.

Text/Call Me Directly: 904.606.9935

Book an Appointment with me: Calendly - Nick Powell

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