Multiple offers on a home for sale — it’s something Realtors saw in 2015 for the first time since prior to the recession.
The time for homebuyers to scoop up a deal disappeared in Northeast Florida and sellers are now firmly in the driver’s seat. In 2016, homes values will continue a steady rise of 3 to 5 percent.
The Federal Reserve in December raised interest rates for the first time in nearly a decade — a change expected to have little to no drag on the growing real estate market.
Foreclosure sales dropped by half last year for Christy Budnick, broker at Berkshire Hathaway HomeServices Florida Network Realty, and buyers started competing for listings. Those who low-balled missed out.
“It’s been interesting, they don’t necessarily understand that the pendulum has swung,” she said.
Inventory for homes changed dramatically in 2015.
A year ago Northeast Florida had almost six months worth of homes for sale, considered a balanced market. Today, it’s four months—and, closer to three months for homes under $300,000.
The dearth at the low-end will pressure homebuilders to deliver more entry-level product in 2016, said Bank of America executive Sandy Robertson.
Rents have been rising, and now high rents are making homeownership more attractive.
Also, developers are catching up on producing the vacant lots on which to build new homes.
The lot boomerang included the launch in 2015 of new master-planned communities Shearwater, Markland and TrailMark in St. Johns County.
Rising rents should also boost Jacksonville’s condo market, said Mike Bugg, principal of The Condo Group. He’s predicting rents at high-end apartments will top-out in 2016, and some apartments will convert to condos.
In new construction, demand will be in the middle of the market, driven by empty-nesters in St. Johns and on the Northside.
Also urbanization, seen in upscale apartment complexes like 220 Riverside and Brooklyn Riverside, could bring Downtown Jacksonville its first condo lofts.
“I have developers looking for product down there,” Bugg said. “The urban core is going to pop, it’s real.”