Winter 2018 Northeast Florida Home Price Update
January 5, 2018 | Margaret Snow
Friends and Clients —

This winter is likely to be very important for many home sellers.

That’s because several big trends are coming together to affect Northeast Florida home prices right now:

1. Housing inventory remains extremely low

The total number of homes on the market fell 10% year over year in the last quarter. This is the biggest drop since 2013, and it's part of a consistent pattern of very limited and decreasing housing supply. Of course, the fewer homes there are on the market, the easier it is to sell, and the higher the price you can expect to get. This is borne out by numbers: Home prices have increased almost 6.5% since last year.

2. Buyers are increasingly optimistic

Despite the tight inventory, homebuyers are increasingly optimistic and continue to look for homes. Partly, this has to do with the recent growth in income and job stability. Also, loosening lending standards are making many home buyers eager to take advantage of current mortgage rates, which slipped under 4% recently, near all-time historical lows.

3. The new tax reform bill will impact the market


The federal government recently passed The Tax Cuts and Jobs Act, majorly overhauling the tax code.  
While it’s unclear how this will affect the real estate market as a whole, there are several changes that do not favor home sellers. By doubling the standard deduction, Congress has significantly reduced the value of mortgage interest and property deductions as tax incentives for homeownership.

However, no changes were made in the rules surrounding capital gains for home sales, which is a major victory for home sellers. As a result of the changes made to the tax code, the National Association of Realtors now projects slower growth in home prices in 2018, with an appreciation rate of 1% to 3%.

When you put all three of these trends together, two big conclusions emerge:

Now is a very favorable moment for home sellers thanks to the shortage in the market, the many eager buyers, and the high and rising prices.

Higher cost, higher tax areas will likely see prices decline as the result of new restrictions on mortgage interest and state and local taxes.

If you are looking to take advantage of the present moment to sell your home, you can get started by finding out what it might be worth in the current market. To do so, check out this home value calculator, which takes into account recent Northeast Florida sales:Enter your street address here to find out what your home is worth

And if you want a more personalized and accurate estimate, give me a call at 904-533-6995. I'm constantly talking to home buyers in the Northeast Florida area, and I can give you a precise idea of how a sale of your home would unfold in the current market.

Buying a home? Click here to search Northeast FL homes. 
Selling a home?Click here to use our FREE home evaluation tool.
Call us at (904)-250-0805 for a 
FREE home buying or selling consultation.
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