Terra, Home Buyer in Jacksonville, FL

I am looking to buy a house in the jax fl(Ft. Caroline 32225) area.Have prices bottomed out yet?

Asked by Terra, Jacksonville, FL Tue Mar 11, 2008

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13
Rent. It's a safe bet. If there are still a lot of foreclosures, then it hasn't bottomed.
3 votes Thank Flag Link Thu Jun 5, 2008
Terra

Prices have not bottomed out in Jacksonville and will probably continue to fall slightly over the next two years. It seems many people don’t understand the economic concepts of recession and contraction. We’ve just ended one of the longest periods of expansion in our history. Just like drinking too much at the office party, this hangover will be intense and long. Inflation and employment numbers will continue to plague the housing sector for the foreseeable future. There is no doubt that raising oil cost will continue to weigh heavy on everyone's pocket and keep many homebuyers out of the market. Also difficulties in the lending sector with tightening underwriting standards will continue to erode an already small buying market. With all this gloom and doom you might think I would suggest that you avoid buying a home. To the contrary, I suggest, if you have the means and ability, to buy as many homes as you can. Why? A home's value lies not only in it's appreciation value (like you see so many of my colleagues speaking of here) but also in it's income or investment value. Income or investment value of a property is normally measured with some ratio of income or earning ability of an asset (in this case a home) compared to it's cost (in this case price plus cost of money). A very simple measure for single family homes is the cap (capitalization rate) rate. A cap rate measure the amount of net income a property could ideally generate compared it's price and it is normally expressed as a percentage. Not to long ago single family homes were selling at a miserable 2 to 4% cap rate in Jacksonville. Currently a home in an outstanding neighborhood at or around median can be had for as high as a 9% cap rate. That is outstanding. If I could draw you a graph here you would find that while appreciation or comparable value is falling and will continue to fall (no matter what Mr. Watson thinks) cap rates are rising and will continue to rise. What this means is that if you can obtain a home with this high of a cap rate now then the value at which you buy the home will be solid as you ride out this comparable value downturn (as cap rates rise with increasing rents and falling price). The most important aspect of a high cap rate in buying a home is the understanding that rental income (if that became necessary) could cover the mortgage and expenses. Bringing that down to earth: if times get tough during your homeownership tenure you don't have to be desperate like people who depend on appreciation for the value of a home and lose your home and investment if times get tough. Rather you can keep your investment and rent it to someone else while you rent at a cheaper rate until your fortunes turn around. Terra, while I am new to Trulia I have many years of real estate, investment, and finance experience. I regularly show people how to achieve wealth acquisition goals through real estate ownership. A home is more than just a place to paint and repair, it is a pathway to wealth. If you would like to understand a different way to buy and own a home just send me an email or call. My phone number is listed on my profile.
Thanks
Ferris J. Anderson
Jacksonville, Fl.
2 votes Thank Flag Link Sat Jul 5, 2008
Now is a great time to buy and get a great deal! If you plan on staying in the home for 5 years or more, I do think that you will see an increase in your value and you would be making a wise investment.
What type of home are you looking for? I will be glad to assist you in your search.
Maggie (904) 803-9828
2 votes Thank Flag Link Wed Jun 4, 2008
Dear Home Buyer in Jacksonville, I have to agree with Shonda and Maggie! The Fort Caroline area is just charming, and you want to take advantage of the beautiful prices in the area too. Prudential Network Realty works as a team and we are glad to help!
1 vote Thank Flag Link Thu Jun 5, 2008
No one can really answer this question, because the market is ever changing. Maggie said it best "It's a great time to buy." It's a buyers market for sure and no one can predict how long you will be able to get the great deals we are seeing every day. I've worked with Maggie and she is a great Realtor. She is very professional and loves helping people. If I were to buy through a Realtor besides myself, I would definitely use Maggie.
1 vote Thank Flag Link Wed Jun 4, 2008
The Jacksonville Florida area is definitely a growing market again. It is important now more than ever to purchase now before prices go on a strong up trend again. I will be glad to assist you in providing properties to consider. Forward your information and I will be happy to help.

Glenn Goff, P.A.
Broker
ERA Goff & Associates Realtors
Glenn.Goff@ERA.Com
1 vote Thank Flag Link Wed Jun 4, 2008
In February Forbes.com named Jacksonville one of the 10 best cities for Bargain-House hunters. You should read the article as to criteria. There are a lot of things in the works for Jacksonville that should help the Market to rebound. Interest rates are hovering around 5.8 to 6.2%. Homes are priced more realistically . The market statistics for homes in Zip code 32225 selling between January 1 and March 13, 2008 indicate that homes are selling on average at 96% of the list price.

All the talk about interest rates one would think that they would be much lower. However, they have remained stable since December 2007. There has been a lot of press that a slight upturn in sales is expected in the 2nd quarter of 2008. Whether the market has bottomed out or not. Now is the time to buy. Always when the market starts to move the interest rates start to move up also. Several months ago Jacksonville had a 23 month supply of homes on the market. We now have 17 months supply. If the market dipped and you saved an additional 10,000 off the price of a home. An increase of 1/2 percent in the interest rate will totally wash away that savings. Your payment would be the same if you had purchased the home earlier and gotten the lower interest rate. If you are not planning on selling that home for 2 or 3 years the bottom out pirce will not affect you. It would have come and gone and your appreciation will be steady.

I hope this information helps you make your decision
Web Reference: Http://www.cathysloan.com
1 vote Thank Flag Link Thu Mar 13, 2008
Great Question! I wish I did know definitively - unfortunately, no one knows for sure. All of the projections I have read have indicated an improvement in our market towards the end of 2008 and Mr. Watson (who has been in the business for over 40 years) also feels that we'll see a slight improvement after the first quarter of this year (these projections could change if something major happens in the economy as a whole). At any rate, this is a great time for buyers! Lots of homes on the market means you can find one that more closely matches your criteria and the current pricing makes homebuying affordable for an increased portion of our population that had been priced out during the rapid increase seen during 2003-2005. Interest rates are still great as well. I do advise my buyers that they should plan to stay in their home for at least 3 years to allow time for appreciation to offset closing costs. If you are interested in a personalized homefinder program using your individual criteria, please call me or email me. My email address is pattinamey@watsonrealtycorp.com and my cell phone is 904-742-8451 (I answer seven days a week) Thank you for this opportunity to be of assistance. Patti Namey, GRI, Broker Associate, Realtor - Watson Realty Corp. http://www.PattiNamey.com 904-742-8451
1 vote Thank Flag Link Tue Mar 11, 2008
Terra, there is no real answer as to whether prices have bottomed out. But, the climate is very good to negotiate. The most important thing to do is a comparable active, expired, and sold anaysis for any area that you are considering before making an offer. Another thing to remember is that you are buying a home not stock, and the housing market will again rise in the future. If you would like information you can reach me at 904.504.1215 or jvance15@bellsouth.net. Thanks!
0 votes Thank Flag Link Thu Jul 3, 2008
I have the house for you ! Its a good area, 3 bed 2 bath, pool screen encl. , many extras, and intercoastal area near the beach ! If your interested email me at XTREMEMOM5@bellsouth.net !!! $225,000$
0 votes Thank Flag Link Wed Jul 2, 2008
We have an established home off San Pablo Rd and atlantic Blvd. We must sell due to relocation. 3 br/2b great area. 578 Peregrine Ct, 588-3750.
0 votes Thank Flag Link Tue Jun 3, 2008
To add to the other answers that you have received....the new port facilities that are being built near the Dames Point Bridge are very shortly going to be adding a lot of jobs to this area. I live on the north side of the bridge and have seen stores etc being added. Just read in the paper that Publix is purting in a store on Merrill Rd, and they do a lot of homework before committing to a new store.
I wish that I had a crystal ball so I can only say that there is a great supply of homes to pick from, interest rates are great for those with good credit, ....and there does seem to be a more optimistic feeling.
Hope this helps.
If you have any questions, call me at 910-8509 , or go to my website at http://www.cindiquinn.com
0 votes Thank Flag Link Wed Mar 12, 2008
I work in the Intracoastal West - Ft. Caroline area and prices are good. A lot depends on the sellers - if they have already moved and really need to sell - well, the best priced home is the home that will get the most attention. Let me know if you would like to see any current listings. Ginny Peace 904-864-2770 gpeace@kw.com
0 votes Thank Flag Link Tue Mar 11, 2008
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