Are you thinking about buying or selling a home in Jacksonville in 2024? The Jacksonville housing market is showing signs of a shift after a period of intense growth. Home prices are still elevated but have seen a slight slowdown in growth, and the market is becoming less competitive for buyers.

It appears that the days of frenzied bidding wars and homes selling way above asking price are starting to fade, offering a more balanced opportunity for both buyers and sellers. Let's dive deeper into the current Jacksonville housing market trends to help you understand what's happening and what you can expect in the coming months.

Jacksonville Housing Market Trends in 2024

Home Sales

Based on data from Redfin, the number of homes sold in Jacksonville in September 2024 has decreased slightly compared to the same period last year. Specifically, there were 1,000 homes sold in September 2024, down from 1,095 in September 2023. This represents a -8.7% decrease year-over-year. While this dip isn't dramatic, it indicates a cooling of the previously very hot market.

I think that this cooling trend is a natural response to several factors. Interest rates have risen, making mortgages more expensive, and potential buyers are becoming more cautious about making large financial commitments. Also, sellers who held on to inflated expectations for their home sale prices are finally being forced to realize that they may not get the premium they were hoping for. It's an interesting shift in the market.

Home Prices

Despite the slowing in sales, median home prices in Jacksonville are still up compared to last year. In September 2024, the median sale price was $310,000, representing a 3.3% increase year-over-year. This rise in home prices is consistent with the broader national trend of inflation affecting the cost of building materials and labor, which ultimately trickles down to home prices.

However, it's important to note that the pace of price increases has slowed significantly compared to previous years when home prices were soaring at much higher rates. While home values have not started dropping yet, it's clear that the market is adjusting.

Housing Supply

The number of homes available for sale in Jacksonville is also an important factor influencing the market. While I don't have specific data on the exact inventory levels, I know that Redfin data suggests that homes in Jacksonville are taking longer to sell than before. The **median days on market is now 60 days, a considerable increase from the 38 days last year. This lengthening of the sales cycle suggests that there is slightly more inventory on the market, giving buyers more time to compare properties and negotiate offers.

Market Trends

The Jacksonville housing market is currently in a state of transition. It's moving from a seller's market to a more balanced market, where buyers have slightly more leverage in negotiations. As we move through 2024 and into 2025, it will be interesting to see if the market continues to shift in favor of buyers or if it settles into a more stable equilibrium.

Here's a summary of some of the key market trends we've discussed:

• Cooling Sales: The pace of home sales is slowing down.
• Moderate Price Growth: Home prices are still up year-over-year, but the rate of increase has slowed down significantly.
• Increasing Days on Market: Homes are taking longer to sell.
• Shifting Balance: The market is shifting from a seller's market towards a more balanced market.

Is It a Buyer's or Seller's Housing Market?

As I mentioned previously, the Jacksonville housing market is transitioning from a seller's market to a more balanced market. While sellers still have the upper hand in certain niche areas or for highly desirable homes, buyers now have more options and a better chance of negotiating favorable terms.

In my experience, this means that buyers are no longer under intense pressure to make quick offers or waive contingencies. They can take their time, carefully consider their options, and potentially negotiate a lower price.

Are Home Prices Dropping?

While there is evidence of a slowing in home price appreciation, at the moment, I haven't seen widespread significant drops in Jacksonville. The market is adjusting to the new realities of higher interest rates and a slightly increased inventory.

It's important to consider that a drop in home prices is not necessarily a bad thing. In fact, a more moderate and sustainable market is generally healthier for the long-term stability of the community. However, it's crucial to monitor the market closely and stay informed about the current trends in your area of interest.

I always tell folks that it's a good idea to connect with a local real estate agent who can provide you with more specific insights into the neighborhoods and price points that you're looking at. They can give you a more detailed idea of what's happening in the local micro-markets that you're interested in.

Factors Influencing the Jacksonville Housing Market

Several factors are currently impacting the Jacksonville housing market.

Interest Rates: The Federal Reserve has been raising interest rates to combat inflation, which has made mortgages more expensive. This has slowed the demand for homes, particularly from buyers who are sensitive to rising borrowing costs.

Inflation: The overall economy is still experiencing inflationary pressures, affecting the cost of building materials, labor, and goods and services. This can impact both home prices and the affordability of buying a home.

Population Growth: Jacksonville's population is continuing to grow, which puts upward pressure on housing demand. The influx of new residents keeps a certain level of competition in the market, especially in desirable areas.

Economic Conditions: The broader economy can impact the Jacksonville housing market. If the economy slows down, unemployment rises, or businesses start to cut back, it could lead to reduced demand for homes.

Local Job Market: Jacksonville's job market is generally healthy, with many industries showing consistent growth. This can support demand for housing in the area and make it more attractive to those looking to relocate.

Inventory Levels: While the supply of homes for sale has increased slightly, it's not a flood of inventory. That may change in the months ahead.

New Construction: The development of new housing projects in Jacksonville is an important factor to keep in mind. Depending on the type and location of these projects, it could impact existing home values and the overall market.

Jacksonville Housing Market Forecast 2024-2025

Predicting Future Trends

It's impossible to predict the future with certainty. Still, based on the current trends, I believe that the Jacksonville housing market will likely continue to moderate throughout 2024 and into 2025. While a crash isn't anticipated, it's likely that home values will dip slightly in the coming quarters. Let's dive deeper into the specifics of the forecast.

What Does the Data Say About Jacksonville Housing Prices in the Next Year?

I’ve been looking at data from credible sources to develop a clearer picture of the Jacksonville housing market forecast. The information is based on forecasts from Zillow. Keep in mind that forecasts are always subject to change, but it is helpful to understand the trends we are seeing.

Here's a snapshot of the anticipated changes:

Period	Expected Annual Change in Home Prices
October 2024	-0.3%
December 2024	-1.3%
September 2025	0.1%

Based on this data, you can expect home values in Jacksonville to decrease by about 0.3% by October 2024 and fall by as much as 1.3% by the end of 2024. However, the forecast for the end of September 2025 indicates a slight uptick of 0.1%.

Looking Ahead to 2026 and Beyond

It's too early to give a definitive forecast for 2026 regarding Jacksonville housing prices. However, I would expect a more balanced market, with moderate price increases and potential opportunities for buyers. Factors such as the broader economic conditions, interest rates, and the local job market will ultimately play a role in determining future trends.

My Personal Insights on the Jacksonville Housing Market

In my opinion, the Jacksonville housing market is likely to experience a period of stabilization, with a slight cooling of home price appreciation. The current market has seen an increase in available homes, giving buyers more options. This increased inventory has moderated the rapid price appreciation of recent years. Plus, interest rates have also played a significant role in the current environment. We've seen mortgage rates fluctuate, affecting buyer demand.

Here are some of my expectations:

• Gradual Price Stabilization: I anticipate that home price growth will continue to slow down and potentially even stabilize or experience a slight dip in certain segments of the market.
• Balanced Market Conditions: I expect the market to transition further towards a more balanced state, with neither buyers nor sellers having an overwhelming advantage.
• Increased Negotiation Opportunities: Buyers will likely have more room to negotiate prices and terms, especially when compared to the intense seller's market of recent years.
• Impact of Interest Rates: The direction of interest rates will significantly impact the housing market. If interest rates begin to fall, it could reignite demand, but if they remain high or increase further, the market could experience a more sustained cooling.

In Conclusion

The Jacksonville housing market is in a period of adjustment and transition. After several years of strong growth, the market is cooling down, with sales slowing and price growth moderating. The market is becoming more balanced, giving buyers more opportunities to negotiate favorable terms.

Should You Invest in the Jacksonville Real Estate Market?

Florida's sunshine and beaches aren't the only things attracting interest. Jacksonville, Florida, has become a hot spot for real estate investors, with impressive growth and promising stability. Let's dive into the details and see if Jacksonville should be on your investment shortlist.

Solid Growth, Steady Appreciation of Jacksonville

The numbers are clear. Over the past ten years, Jacksonville real estate has soared by an impressive 137.67%. That translates to a consistent annual increase of a healthy 9.04%. This significant growth beats not only the state of Florida but the national average too. Jacksonville's real estate market has proven to be a winner for investors seeking long-term value.

Affordable Now, Prime Potential Later

Jacksonville offers a key advantage: affordability. Compared to other booming Florida markets, Jacksonville remains relatively accessible. The median listing price in Jacksonville in April 2024 is $315,000, which is lower than the national average. This affordability window presents an opportunity to invest before prices inevitably rise. As the city continues to thrive, so too will its real estate value, offering investors the potential for substantial returns down the road.

Jacksonville – A City on the Rise

Jacksonville's real estate market isn't just about speculation. The city itself is experiencing significant growth. A booming job market, especially in logistics and healthcare, is attracting new residents at a steady clip. The Jacksonville metropolitan area added over 20,000 new residents in 2023, and this growth is expected to continue. This population growth fuels demand for housing, creating a favorable environment for rental properties and potential future appreciation.

More Than Numbers: Jacksonville's Allure

While the numbers are undeniably attractive, Jacksonville offers more than just financial gain. The city has a vibrant culture, a thriving arts scene, and beautiful natural surroundings. Here's a glimpse of what Jacksonville has to offer:

• Culture: Jacksonville boasts a unique blend of Southern charm and cosmopolitan energy. The city is home to numerous museums, art galleries, and theaters. The Jacksonville Jaguars NFL team and the Jacksonville Jumbo Shrimp minor league baseball team provide entertainment options for sports fans.
• Arts: Jacksonville has a flourishing arts scene. The Cummer Museum of Art & Gardens houses an impressive collection of European and American art. The Museum of Contemporary Art Jacksonville showcases contemporary works by emerging and established artists. The Jacksonville Symphony Orchestra is one of the oldest orchestras in the Southeast United States.
• Nature: Jacksonville is blessed with an abundance of natural beauty. The city's pristine beaches are perfect for swimming, sunbathing, and surfing. Kayak along the Intracoastal Waterway or explore the Timucuan Ecological and Historical Preserve. Jacksonville also has numerous parks and gardens, offering opportunities for relaxation and outdoor recreation.

Considering Jacksonville for Your Portfolio?

Jacksonville's real estate market presents a compelling opportunity for investors seeking a balanced mix of affordability, stability, and long-term growth potential. While some hot markets may offer the allure of quick flips, Jacksonville allows you to build a solid foundation for your investment portfolio.

The city's job market, though experiencing a slight cool-down in April 2024 with a 1.8% private sector job growth rate, still added over 12,500 jobs year-over-year. This indicates a stable job market with room for future growth.

The area's labor force also increased by 1.2% over the year in April 2024, suggesting a healthy population increase. This steady stream of renters, coupled with Jacksonville's potential for continued growth, makes it a good choice for investors looking for reliable rental income and long-term appreciation.

Bottom Line for Investors

Jacksonville's real estate market is a golden opportunity for informed investors. With its impressive track record, promising future, and attractive entry point, Jacksonville offers a chance to unlock significant value in the sunshine state. So, whether you're a seasoned investor or just starting out, Jacksonville is definitely worth a closer look.

Jacksonville has a strong economy, with a 3.7% unemployment rate that matches the national average. In 2021, The Wall Street Journal ranked Jacksonville as the fifth hottest job market in the United States and the top market in Florida. The city's economy is driven by its naval bases, which are the third largest military installation in the country, and other large employers like CSX Corporation, Landstar System, and Southeastern Grocery.

Jacksonville's Best Neighborhoods Buying a House (or Investment)

Jacksonville's real estate market is sizzling, and some neighborhoods are hotter than others. If you're an investor looking for areas poised for significant growth, look no further than these top appreciating neighborhoods (Neighborhoodscout):

1. Biltmore: This revitalized historic district boasts stunning Spanish Revival architecture and a vibrant community. Over the past five years, Biltmore's property values have skyrocketed, making it a prime location for investors seeking long-term gains.

2. Paxon/Commonwealth: This up-and-coming area is undergoing a major transformation. With a mix of restored bungalows and new construction, Paxon/Commonwealth offers a unique blend of charm and affordability. Investors can capitalize on the area's potential for significant appreciation as revitalization efforts continue.

3. Edgewood: This historic neighborhood, located just outside downtown Jacksonville, is experiencing a resurgence. With its tree-lined streets and beautiful architecture, Edgewood offers a desirable living environment. Investors can expect to see healthy returns on their investment in Edgewood's flourishing market.

4. Allendale/Grand Crossing: This revitalized area near Ed Duval Park offers a mix of historic homes and modern amenities. Property values in Allendale/Grand Crossing have risen steadily in recent years, and the trend is expected to continue. Investors looking for a stable yet appreciating market should consider this area.

5. Woodstock: This eclectic neighborhood, bordering Riverside and Avondale, boasts a vibrant arts scene and trendy shops. Property values in Woodstock have grown significantly over the past five years, making it a lucrative option for investors.

6. Durkeeville/Edward Waters College: This historically black neighborhood is experiencing a renewal. With Edward Waters College acting as a community anchor, Durkeeville/Edward Waters College is poised for future growth. Investors seeking value and long-term appreciation should keep an eye on this area.

7. Lackawanna: This quiet neighborhood on the Northside offers a mix of affordable housing options. While Lackawanna may not have the same cachet as some other neighborhoods on this list, its potential for future appreciation shouldn't be overlooked. Investors seeking a more under-the-radar option with good upside might find Lackawanna attractive.

8. Edgewood Manor: Located near the Jacksonville International Airport, Edgewood Manor offers convenient access to transportation hubs. The neighborhood boasts a mix of single-family homes and apartments, making it attractive to a wide range of renters. Investors looking for a steady rental income and potential for appreciation can find value in Edgewood Manor.

9. Grand Crossing North: Bordering Grand Crossing, this revitalized neighborhood offers a mix of historic bungalows and new construction. Property values in Grand Crossing North have been steadily increasing, and the trend is likely to continue. Investors seeking to capitalize on an area on the rise should consider Grand Crossing North.

10. Moncrief Park: This historic neighborhood is undergoing a significant revitalization effort. With its proximity to downtown Jacksonville and growing cultural scene, Moncrief Park offers exciting possibilities for investors. While there may be some initial legwork involved, the potential for long-term appreciation is substantial.

Remember: While past performance is an indicator, it doesn't guarantee future results. Before investing in any neighborhood, conduct thorough research, consider your investment goals, and consult with a qualified real estate professional.