How’s the Market?

How’s the Market?

By Cara Ferreira 

It’s the question on everyone’s mind. “What’s going on in the real estate market? Do you see a slowdown?” I’ve been asked this question for the past few months at almost every gathering. Since COVID hit in 2020, we have seen quite a few ups and downs in the real estate market. So it is no wonder this question is such a hot topic!

During the pandemic (in spring 2020), when everything initially shut down, the real estate market screeched to a near halt. Many realtors were afraid and concerned. After all, if people couldn’t go to work and could not leave their houses, they certainly weren’t going to go out for showings and buy a new home. As a result, properties began sitting on the market longer. Realtors had to get creative and find new ways to virtually “show” and market their homes.

Then one day, seemingly out of nowhere, not only did people start moving and buying houses again, but they all seemed to do it at once. Inventory and interest rates were at an all-time low, especially in Florida. Many jobs and schools went virtual, allowing people to choose wherever they wanted to live. Due to its amazing weather, beaches, no state income tax, and lax Covid protocols, Florida (particularly St. Johns county because of its “A” rated schools”) became the hot spot. Properties were selling almost as quickly as they were listed. Our jobs as real estate agents shifted from helping people obtain offers to assisting sellers in managing the many offers they received, choosing the one with the least risk, and keeping deals on track. Low supply and high demand meant multiple offers on almost every property. At one point last summer (2021), there were only 16 homes on the market in the 32081 zip code!

In June 2022, again apparently, out of nowhere, things shifted again. Factors like rising interest rates, a shaky economy, out-of-control home values, and more jobs returning to brick and mortars all contributed to a significant slowdown in the housing market. Today there are about 130 properties listed on the market in the 32081-zip code. Average days on market span between 30-60 days. Not only are most properties not receiving multiple offers, but many are making price adjustments before receiving an offer. Just today, there were 290 price changes in the Jacksonville area MLS (multiple listing service). The market has once again shifted from a sellers’ market to a buyers’ market.

The truth is the market is constantly shifting. But no matter what the economy looks like, people will always need to buy and sell property. So it’s more important than ever to choose a professional real estate agent you can trust. Look for a realtor who has experience and is prepared to help buy or sell a home in any market.