Phil Aitken
Phil Aitken

Should I Wait for Interest Rates to Come Down Before Buying a Home in Jacksonville?

If you’re considering purchasing a home in Jacksonville, the decision of whether to buy now or wait for interest rates to come down can be a difficult one. On one hand, lower rates could save you money over the life of your mortgage. But on the other hand, waiting too long could mean facing higher home prices and increased competition. In this post, real estate expert Phil Aitken explores the factors to consider when timing your home purchase in the Jacksonville real estate market.

Key Takeaways

  • Interest rates are forecasted to decline gradually through 2024, potentially reaching around 6.25% by year-end
  • While waiting could increase your purchasing power, home prices in Jacksonville are also expected to continue rising
  • More buyers may enter the market as rates drop, leading to heightened competition and bidding wars
  • Your specific timeline and budget will determine if it makes more sense to buy now or wait

Are Interest Rates Expected to Go Down in 2024?

After reaching multi-decade highs in 2023, mortgage interest rates are predicted to trend downward throughout 2024 as inflation eases. The latest forecasts suggest rates could drop to around 6.25% by the end of the year, down from the current levels around 7.25%. However, this decline is expected to be gradual rather than a sudden plunge, if at all.

What is the Current Jacksonville Housing Market Like?

Your Home Sold Guaranteed Realty - Phil Aitken Home Team. Should I Wait for Interest Rates to Come Down Before Buying a Home in Jacksonville?

According to data from the Northeast Florida Association of Realtors (NEFAR), the Jacksonville housing market remained relatively active in April 2024 compared to the previous year. Key statistics include:

  • Median home prices reached $340,000, a 7.9% increase from April 2023
  • Despite higher prices, closed sales were down only 2.3% year-over-year
  • Inventory levels dropped 30.2%, with only a 1.4 month supply remaining
  • Homes sold for 97.2% of their list price on average, similar to 2023
  • New Listings surged to 6,092 in April 2024, up 29.9% from April 2023.

These numbers suggest that while prices have risen, buyer demand in Jacksonville remains strong, with homes selling quickly and near their asking prices.

What Happens If You Wait for Interest Rates to Come Down?

If you decide to postpone your home purchase in hopes of securing a lower interest rate, there are both potential benefits and drawbacks to consider.

Increased Purchasing Power

As interest rates decline, your borrowing costs decrease, effectively boosting your purchasing power. A mortgage rate 1% lower could translate into qualifying for a home roughly $25,000 more expensive while keeping your monthly payment the same.

Home Prices Increasing

However, some predictions indicate that home prices in the Jacksonville area are forecasted to continue rising, potentially offsetting any interest rate savings. This key metric is one to watch closely if you plan to buy a home in Jacksonville. Waiting too long could price you out of the market entirely.

More Competition Expected

Additionally, as mortgage rates become more attractive, more buyers are likely to enter the housing market, leading to increased competition and potential bidding wars. Acting now could give you an advantage over the wave of buyers expected to return.

Call Jacksonville Realtor Phil Aitken To Buy a Home

Your Home Sold Guaranteed Realty - Phil Aitken Home Team. Should I Wait for Interest Rates to Come Down Before Buying a Home in Jacksonville?
Phil Aitken

If you’re feeling torn about the best time to buy a home in Jacksonville, experienced local realtor Phil Aitken can provide personalized guidance based on your unique situation and goals.

With years of expertise in the Jacksonville housing market, Phil deeply understands the local trends and can help you weigh the pros and cons of buying now versus waiting. He’ll work closely with you to find the right property within your budget while navigating the competitive landscape.

Don’t go it alone – contact Phil Aitken today and let his knowledge and negotiation skills give you the edge in the Jacksonville real estate market.

To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!

Phil Aitken, Owner/Broker
Phil Aitken is the Owner/Broker with Your Home Sold Guaranteed Realty - Phil Aitken Home Team and has over 13 years of Real Estate experience. Phil’s faith and desire for his family’s continued security fuel his business growth and leadership. The Phil Aitken Home Team continues to profoundly impact the people of Jacksonville via supporting several faith-based organizations. Phil gives back a portion of every real estate transaction to The Tim Tebow Foundation and Rethreaded. Find Phil's full story here.