The second half of 2012 has been witness to an increase in housing prices across the United States, and this has impacted the price of property sales in Jacksonville, as well. Florida foreclosures are especially experiencing an increase in pricing cost, as the homes that were selling at the bottom of the market have experienced the greatest growth in selling price over the past year.
The fact that property sale prices are on the rise isn’t coming as too much of a surprise to many people. Just this year foreclosure rates have started to fall, the number of houses on the market has begun to dwindle and home contractors are feeling more confident that now is a good time to continue building. Here in Jacksonville we are seeing new home construction, renovations and many standing houses selling without spending nearly as much time on the market as was expected just two years ago.
Despite the positive trends going on across the country and here in Jacksonville, many people are still taking a step back as 2012 comes to a close and wondering what exactly is causing this change in housing prices. Experts have asked themselves the same questions and have broken it down into just a few small bullets to help everyone else understand.
Here are the leading reasons housing prices are on their way up:
- Increased Affordability: It was only going to be so long before those who could afford to get involved in the housing market took advantage of all the low-cost houses. Many buyers were holding off on purchasing to see if prices would decline any farther, but once it was clear they were turning around more buyers entered the market. This means greater competition for sales, and that has helped drive property sale prices even higher.
- Rental Property Management Getting Costly: The cost of rental properties in Jacksonville and elsewhere is steadily rising, leading many renters to believe that it is now more affordable for them to leaving the rental market and start considering property sales.
- Distressed Sales are Declining: The number of new foreclosures and short sales entering the market are falling, which means that more buyers are forced to turn to traditional property sales when looking for a house.
When combined, these three factors make for an overall healthy trend in housing sales. After the past several years with housing costs being so unsure across so many communities, many experts are delighted that we are closing out 2012 on a positive note.
If you have been holding back on purchasing a home in the hope that property prices will continue to fall, take this as your warning and contact a real estate specialist today.