Jacksonville Local Market Report: Q3 2022
KEY TAKEAWAYS FROM Q3 2022:
Prices are up from a year ago, but price growth is slowing.
Equity gains in the last 3 years have extended the trend of positive price growth after the recession
Most buyers in this market have access to government-backed financing
Price appreciation and principle payments in the last 3 years have boosted total equity growth since the recession
Employment has held up and is on an upward trend
Unemployment in Jacksonville is better than the national average and improving
Local employment growth is strong compared to other markets
Florida's economy is stronger than the nation's, but slowed from last month's 6.69% change
The current level of construction is 38.7% above the long-term average
Production above trend for an extended period of time could cause prices to moderate as inventory is built up
Construction is down from last year, but appears to have bottomed.
Monthly mortgage payment to income weak by local standards and could weigh on demand but historically more affordable than most markets
The price-to-income ratio is high by historic standards and getting worse but historically affordable compared to most markets.
Mortgage rates continued their upward trek in the third quarter of the year. Due to elevated inflation, the Federal Reserve raised twice its short-term interest rates by 75 basis points each time. While both rising inflation and higher interest rates typically move up mortgage rates, the 30-year fixed mortgage rate surpassed the 6.5 percent threshold moving closer to 7 percent. According to the mortgage finance provider Freddie Mac, the 30-year fixed mortgage rate rose to 5.6 percent in Q3 2022 from 2.9 percent a year earlier. As long as inflation remains elevated, mortgage rates will continue to rise. NAR forecasts the 30-year fixed mortgage rate to average 6.5 percent at the end of the year.
*information from NAR Jacksonville Local Market Report Q3 2022
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