Berkshire Hathaway HomeServices Florida Network Realty says 2020 promises to be strong
Predicting residential real estate markets can be tricky. What appears to be a clear path today may not be quite as evident as the year progresses.
Numerous factors can affect the market over any time period, including interest rates, stock market performance, politics and world events. Industry insiders do their best to anticipate how housing markets will perform based on economic indicators and demographics.
“Given Northeast Florida’s strong economic growth and overall desirability, 2020 will be another stellar year for residential real estate,” said Berkshire Hathaway HomeServices Florida Network Realty President and CEO Christy Budnick. “With attractive interest rates and a robust local economy, I am optimistic that our local market demand will remain strong.”
Consumer confidence
The foundation for a strong housing market is driven by positive consumer confidence levels. There is a high level of consumer confidence among Floridians, according to a December 2019 survey conducted by the University of Florida’s Bureau of Economic and Business Research. Researchers say the outlook is positive heading into 2020, thanks in part to a strong labor market.
Election jitters
Most industries are impacted during a presidential election in some capacity, including residential real estate. Regardless of party affiliation, presidential elections can (and often do) impact market temperature across the country. The uncertainty of what’s to come, no matter who assumes office, is enough to lead to a bit of a slowdown in September and October, but it will be short lived with an increase in sales before year’s end.
Inventory challenges
The supply of homes for sale in Northeast Florida will remain low and continue to affect buyers looking for low- to mid-priced homes. The low inventory of homes for sale has led to higher prices, contributing to a seller’s market in most price points.
New construction
New home construction will continue to be strong in Northeast Florida. With high demand, there is no reason to expect a slowdown in the near future. There are several large communities (such as Nocatee) that have room for continued growth and others, such as Seaside Vista in South Ponte Vedra, that are just getting started.
Price appreciation
Jacksonville is projected to see single-family homes increase in value in 2020. Price appreciation will remain healthy at a moderate 3 to 5 percent.
Even in the unlikely event of a recession, the housing market should remain strong. Many investors turn to real estate during a recession to avoid stock market volatility.
Home Sales
The number and pace of home sales will remain brisk, particularly for low- to mid-priced homes.
No matter what the conditions, trust a real estate professional to guide you through the process of buying or selling your home. Contact a Berkshire Hathaway HomeServices Florida Network Realty Realtor for expert advice. Call (904) 296-6400 or visit FloridaNetworkRealty.com.
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