Time and time again we’ve seen and heard that during a troubled economy, people look to the housing market to lead the way to a recovery.  So what does that mean for you?  How can you as a potential buyer of real estate or seller of real estate make a difference in this market and in this economy?

Start by setting realistic expectations.  Housing is a commodity that will always be in demand, especially in this region.  Northeast Florida’s diverse economy continues to grow and in 2008 this region experienced the creation of more than 3,300 new jobs stemming from 17 different companies according to Greg Smith, Cornerstone Chairman, in his January 22^nd, 2009 investor update.   However, if you are selling in this market, pricing and exposure are critical.

We are in exceptional times, but unfortunately short sales and foreclosures are no longer the exception in most areas.  These types of sales can no longer be ignored when pricing your home to sell.  More importantly, in a stabilizing market the listing price of your home needs to be competitive with the other active homes on the market that have not yet sold that are comparable to your home.  Through April of 2009 there were approximately 3,300 residential sales reported to the Northeast Florida Multiple Listing Service.  On average homes sold at 93% of their listing price, indicating that homes priced at market value are selling.

The internet is here to stay and offers sellers unprecedented visibility to potential buyers.  According to the National Association of Realtors, over 84% of buyers start their search for real estate on the internet.  However, as home buyers become more sophisticated in their search, potential buyers not only need to be able to find your home on the internet, you need to have relevant information about the home including pictures, photo tours, expanded property details as well as community, school and neighborhood information. 

As a buyer, here are some practical things that you can do.  

Talk with a qualified mortgage lender.  Interest rates are at a 50 year low and the government is offering first time home buyers a tax credit up to $8,000.  Lenders are tightening their belts and while rates are low, people may not qualify for as much as they expect due to heightened lending guidelines.  Speak to a professional upfront so you know what price range you should be targeting.

Weigh all of your options.  Buyers are conditioned to think that they are going to find a “steal” whether it be a foreclosed property or a short sale.  The majority of sales in the Northeast Florida in 2008, however, were not short sales and buyers might be overlooking even better opportunities if they limit their searches to distressed sales.  According to the December 2008 issue of Business Week, Jacksonville real estate is priced 6% below one estimate of what it should be.   Additionally, the Northeast Florida Multiple Listing Service reported in 2008, only 2,326 sales of the total 11,154 residential sales were short sales, foreclosures or pre-foreclosure properties.  Buyers also need to understand that purchasing a short sale requires patience; homes are typically sold as-is and most lenders are not able to close on a short-sale in the standard 30 day time frame. 

Check your data.   The Jacksonville real estate market includes a large geographic area comprised of many different communities.  The impact on the real estate market varies for each community.  Talk to a real estate professional to understand the local market condition for the neighborhoods and type of real estate that interests you. 

A strong and growing local economy, low interest rates, plentiful inventory, affordable home prices and qualified buyers make now a great time to buy or sell real estate in Northeast Florida.