Wow, the last eight weeks have certainly brought a range of emotions! In times of uncertainty, one of the best things we can do to ease our fears is to educate ourselves with research, facts, and data. With concerns of a recession on everyone’s minds, it’s important to take a look at what has transpired over the years and how the Jacksonville housing market has successfully weathered these storms. Here are three things to keep in mind:
1. Jacksonville’s housing market is strong
We all remember 2008. This is not 2008. Today’s market conditions are far from the time when housing was a key factor that triggered a recession. From easy-to-access mortgages to skyrocketing home price appreciation, a surplus of inventory, and more, we’re not where we were 12 years ago. None of those factors are in play today. What has occurred over the past weeks is a momentary event in time, a stark difference to the crash of 2008 that failed to get back to a sense of normal for almost four years.
2. A recession does not equal a housing crisis
Next, take a look at the past five recessions in U.S. history. Home values actually appreciated in three of them. It’s true that they sank by almost 20% during the great recession, but as mentioned earlier, 2008 presented different circumstances. In the four previous recessions, home values depreciated only once (by less than 2%).
3. Housing is not the driver
Concerns about the global impact COVID-19 will have on the Jacksonville economy are real. That said, we can be confident that, while we don’t know the exact impact the virus will have on the housing market, we do know that housing isn’t the driver.
The reasons we move – marriage, children, job changes, retirement, etc. – are steadfast parts of life. So, if you have questions about what it means for your family’s home buying or selling plans, please discuss with your Realtor. This too shall pass. Stay well.
Have a real estate question or need some sound advice? Call or text Phyllis Staines at (904) 476-7653 or email pstaines@aol.com. Every question will receive a response and may be chosen to appear in Saturday's Times Union newspaper.