Whether you live here or not, most likely you know Florida continues to lead the news on various topics!
We won’t get into all the various stories making headlines, just the ones that are relevant in our shared business interest (investment property).
Again, whether you live here or live in another part of the country and have investment property here, you know what’s about to happen: possible storm activity! We’ll keep you apprised as we always do regarding potential storm threats as the rest of the season unfolds.
This month some notes/reminders from Mike:
Owners should be on lookout for property tax assessed values increasing on average of 20% to 30%. In the state of Florida property taxes are limited to 3% increase for homestead property and 10% increase for investment property.
As a reminder, please check with your insurance agent about building values associated with your property. You may need to increase the value so you are properly insured.
From the sales front what Mike is seeing:
- The average sold price to list price is 98.7%.
- In a recent condo community, there have been 1 or 2 that the sellers paid buyers concessions. One condo the seller provided $10,000 in concessions
- As interest rates rise sellers are starting to provide more concessions as buyers need the buy down of interest rates to qualify to purchase.
- Interest rates based on the federal reserve will rise which will slow down the activity even more.
- The inventory on the market has increased from 1.6 months of supply to 2.4 months of supply. Listings increased from 5.7 thousand to 6.8 thousand listings in 1 month.
- Historically we are entering the fall to winter slow down.
- My personal belief in Jacksonville is that we are entering a period when transactions (sales) will slow down even more as the Federal Reserve increases the interest rates (technically the Federal Reserve does not control the mortgage interest rates but generally it is a good indication).
- We will be buffered in Florida a little as the state continues to grow and we do not have the inventory to match. Market values will probably drop but not to the extent of what you might observe in other parts of the country.
Have a safe and happy Labor Day weekend!
The Team at FPM Properties