Although many markets around the country are softening, ours is continuing to hold strong. Here’s why.
I just returned from Washington D.C. where I spent three full days with my mentor, Mike Ferry, and 800 of some of the best real estate agents throughout North America.
The more I listened to professionals from California to Montreal to Miami, I kept hearing about how their markets have softened.
I’ve been studying our own local market, so I wanted to share my professional opinion as well as a few economists’. For starters, inventory here continues to be in demand, the decrease in mortgage rates has injected additional demand, and we expect a strong market to continue into the 2020 election year. After the election is when we expect the slowdown.
Data suggests that our North Florida market will outperform the national market in a slowdown or correction. Why? Look at the national debt chart. The U.S. national debt is upwards of $21 trillion. History shows us that huge national debt leads to reduced economic growth, a weaker U.S. dollar, higher taxes, and higher inflation.
If you’re a business owner, what’s your biggest expense? Payroll, right? There are nine states that have no state income tax for their residents: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you’re a large corporation, you would rather reduce your payroll costs than lay people off.
Perhaps I’m biased, but I’d rather move to Florida than any of these other states. I’m not alone in this thought process. Duval County has seen a population increase of 2% in the last 12 months while St. John’s County has grown by 4% per year for two years in a row. According to niche.com and many other sites, St. John’s County is the No. 1 place to live in the state of Florida.
These factors create demand, and demand will always provide shelter during a market correction. Whether you already live here in Northeast Florida or a relocation is in your future, our economic outlook is good and the quality of life here is even better.
If you have any questions for me, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.