by Michele Newbern Gillis
Staff Writer
A strong single family housing market and low interest rates contribute to the booming housing market in Jacksonville, said Charlie Clark, veteran market analyst at the Northeast Florida Builders Association’s Sales and Marketing Council breakfast last month.
“Other reasons the economy is doing well is that we have a record high rate of refinancing, there have been tax cuts, we have a weak dollar and low inflation,” said Clark to a crowd of over 150. “People are refinancing for a second and third time because it is so easy right now and interest rates are so low.”
On the downside, he said the war jitters, weakening consumer confidence, huge equity losses, weak corporate earnings and weak manufacturing sector are threats to the local economy.
With mortgage rates at an all-time low of 5.91 percent, he said it is making the housing market more affordable for both resales and new construction.
“There will be 2.4 million homes sold in the United States in the next six months,” said Clark. “People are able to go buy a bigger, newer house and with the interest rates so low, their payments are the same.”
He said real estate is attracting investors instead of the stock market because over time, they know it will appreciate in value.
“In Jacksonville, we have some excellent appreciation in our real estate,” said Clark.
He said he anticipates the interest rates will stay the same until the third quarter of this year, when they will begin to rise again.