What's up with Jacksonville?

Why is Jacksonville so often overlooked as a leading Florida city?  
What are the under currents that do not allow this city to compete with other major Florida cities including Orlando, Tampa, Ft. Lauderdale and Miami?  

Jacksonville has the infrastructure to support and compete with any of these cities.  It is the gateway into North Florida and is home to many regional offices of fortune companies.  
Property values are very competitive, especially when comparing them to other major Florida cities.  
The weather is certainly considered to be a mild/seasonal climate. 

Yet in a recent survey of the southeast, projections for commercial growth (South of Atlanta) moved beyond Jacksonville and focused on Orlando and Tampa for growth, employment and housing.
Jacksonville cannot seem to shake off the image that it has had for decades as a "stereotyped" city that lacks the diversity and insight to lead it into the years ahead to compete with it's neighbors.
Of course, many are satisfied with the status quo and not to undermine the growth that has occurred during the last decade would be foolish.

Let's not stall, or worse yet fall backwards into a city of the past.  Progress can only occur when forward thinking citizens and those who represent our best interests do what is right for us and the prosperity of all.

Flip or Hold

It appears that the debate on whether to flip or hold has already begun in regions throughout the US.

Of course, it makes sense to flip in areas where higher profit margins can be expected in short  turn abounds.  New York City for one continues to see a higher flip rates than other parts of the country.  Many areas of California are also flipping faster and not holding properties for rent.

I think that one factor which is being overlooked is the economics of the regions of the country that we are discussing.  In my opinion, it does not just depend on that flip margin.  Many investors will flip a property for a few thousand dollars in gains.  The cost of money and the capital available to those who choose to hold or flip is equally important.

Buy and hold vs. buy and flip has been going on for decades.  The cost of funds and access to those funds are as important if not more important than the margins made.  Of course, we all want maximum profit margins.  Not all of us in the business have the luxury of making these decisions based on margins alone

Mayport Road, Jacksonville FL: Welcome on board!

Since the arrival of additional naval ships and the increase in the local population by the Navy, Mayport is beginning to see a rebound in both housing and business segments. 

Investors have been quick to jump on houses that were previously in distress and are now being rented or sold as a need for increased quality and supply of housing is needed. 

Additionally, business, once closed and boarded up along Mayport Road are beginning to show signs of life as the demands of sailors and new families in the community require  the services of the local community.

Mayport has been a longstanding pillar to the beaches area and it is great to see  the rebound and interest in bringing back the restoration and business that once helped Mayport thrive.

Please visit these links and support our veterans, and troops.

- VetFriends: 1,798,025 members (helping veterans to reconnect)

- Navy Seals Foundation

- Navy Marine Corps Relief Society: Get involved

Also don't forget to take a look at Mayport Travel Guide, and plan a "Mayport" vacation with your family, and friends.

Interest Rates and the Impact on Real Estate in 2015

On a macro level, it appears that many agree that we will begin to see an increase in traditional homebuyers return to the real estate industry in 2015.  After years of a "reorganization" of the housing industry, institutional buyers, hedge funds, private equity, cash players/investors have dominated the acquisition market.  With continued low interest rates forecasted for 2015, a slow return to mortgage financing and pent up demand from qualified buyers, housing should see a gradual shift to the a healthy mix of diversified buyers in the coming year.
Of course interest rates play a huge role in all aspects of our economy, and housing is no exception.  The general view is that rates will remain low and this is very good news for the recovering housing markets and for buyers who require financing to participate.

Housing remains a very local issue with national implications.  This is clearly demonstrated as we observe housing values and trends around the country.  As a nation, rates will need to remain on the lower side for the next 3-5 years so that the  potential to enter/reenter the housing market (especially the millennials) have the opportunity to enter the market and purchase desirable housing that is aligned with their budgetary.
Given that housing and all of the related industries and professions which are tied to the housing market make up such a large part of our economy, the government should continue to facilitate all reasonable avenues to promote strong housing growth and assist the housing market in it's return to a healthy sate of supply and demand.

2015 Housing Market

While all indicators seem to point to a strong  economy for 2015 in the US, the housing market continues to play by a different set of rules. 

 

Not only has housing been largely impacted by bulk purchases though hedge funds and private equity during the past 2-3 years,  but the real estate market itself has seen mixed recovery and even huge gains depending on regional geographic sectors. 

For example, cites including New York, San Francisco, much of Southern California and Miami and the Beaches have all experienced  significant price gains.  Other parts of the country have seen modest appreciation and yet we still read about many areas where defaults are on the rise and markets are softening.  Of course,  we haven't even considered the fact that tight lending standards and the ability to get financing has become nearly impossible and has only recently started to show signs that lenders are once again providing mortgages for buyers who are unable to pay all cash.  The typical buyers/first time buyers have found it very difficult to even participate in the market due to tight lending standards, leaving the a large percentage of transactions being controlled by institutional investors and international capital entering the US

 

 

Hopefully in 2015 we will see a return of traditional buyer/seller transactions and mortgage lending will do more to facilitate the process.

In summary, I think this will be a much needed transition if the overall real estate market is going to maintain a healthy position.  It will encourage pent up buyers that are currently trapped in rental housing the opportunity to once again obtain home ownership in a stabilizing housing market.

The Ever Changing Real Estate Market

The growing influence of  the internet and the impact it has had on real estate, much like every other aspect of our lives has created a game changer.
We now see properties via online auction, where properties are purchased in minutes for cash and the traditional buyer is never even aware they were for sale.

Virtual presentations of mega mansions of non listed properties where a deal is done and we only learn about when we read about it after the fact.
Hedge funds buy in bulk for  hundreds of properties for cash in a single transaction.

All making significant changes in the way we view, value and buy and sell real estate.
The days of traditional buying and selling seem to be a thing of the past for many. 

While I am sure we will always support the traditional methods for moving markets, increasingly unconventional methods will redefine how real estate changes hands in the ever changing world of real estate.

Atlantic Beach

Travel Channel selected Atlantic Beach as one of the top 10 beaches in Florida.

Atlantic Beach which is located on Jacksonville's Atlantic coast is known for it's beautiful soft sands and friendly atmosphere. It is frequented by locals and vacationers alike.  Atlantic Beach also offers a great restaurant and nightlife scene just off the beach for all to enjoy.

The area includes a large mix of homes and multifamily properties to choose from.

Residents can choose from bungalow or condo lifestyles to oceanfront estates.  No matter what your preference may be, Atlantic Beach has something for everyone.

Atlantic Beach