Newly Updated 2008 Real Estate Forecast

Buyer, Seller, Real Estate News

Slow Real Estate Recovery Forecasted Starting Summer 2008

According to the National Association of Realtors the existing homes sales volume should hold steady through late spring until the "gradual recovery" takes effect.

The Reasons for The Real Estate Turn Around in Summer of 2008

According to NAR chief economist, Lawrence Yun, the buyers who have been unsure if they should buy will be enticed by the higher loan limits and access to lower interest rates through the new FHA mortgage limits.

Pending Homes Sales Stable

Stable at a level of 85.9, The Pending Home Sales Index is the same as it was in December. This is a good sign that sales levels are maybe hitting bottom and won't be falling anymore.

This should give confidence to the buyers who been waiting for the sign to buy before prices start going back to normal levels. This should also stop the media from publishing "Real Estate Scare" stories that feed on themselves and create a more unstable real estate market for us all.

Sales are Expected to Improve Towards End of the Year and Again in 2009

The first half of 2008 will be "flat" with sales forecast of approximately 4.9 million existing homes sales. Then in the 2nd half of 2008 existing homes sales are expect to jump to 5.8 million for an average of 5.38 million sales in 2008.

If this forecast holds true we will have a 18.4% increase in sales in the second half of 2008. This will look like the old "sellers market'' of 2005. So if you are thinking of buying in the Jacksonville or Ponte Vedra Beach area you should really start looking now!

Existing home sales shall then jump "3.5% to 5.6 million in 2009".

But What About Home Prices?

Only a small decline of "1.2% to a median of $216,300 this year, and then an increase of 3.5% to $223,800 in 2009." As reported in my 2007 Jacksonville Real Estate Market Review median home values only dropped 2%.

Looking on the bright side, with declines in housing prices more people can buy homes and help return the market to normal.

Want a Bargain in 2008? Look at New Construction in Jacksonville

"New-home sales should decline 23.7% to 590,000 this year before rising 7.2% to 633,000 in 2009." So if you make an offer to a builder this year you will get a much better deal then in 2009. But to take advantage of the current market, you should act now.

This is verified by the forecast of new home prices, "The median new home price is likely to fall 6.1% to $232,000 this year, and then rise 5.1% in 2009." So if you buy at the bottom of the dip and these number hold true you can see a 11.2% home appreciation.

So it looks like a few of my 5 Predictions for the Jacksonville Real Estate Market for 2008 - 2009 are coming true!

Good Luck Jacksonville and Happy House Hunting!

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