While the flurry of heated refinance activity has long since past, the Jacksonville market will continue to see growth in purchase transactions, but perhaps at a somewhat slower pace due to moderating interest rates. Bank of America continues to seek and develop innovative products and services to meet the needs of emerging markets and first time buyers, which represent the fastest growing consumer segments. I believe we will continue to see product enhancements to make achieving home ownership easier and to provide more flexible payment options for consumers.
Jeff Zimmerman, Bank of America
After looking into our crystal ball we have all the answers: We are lucky to live in Florida! We are lucky to live in Jacksonville!
In 1986 the IRS changed the regulations on investment homes and they predicted that the housing market was going to collapse. In this area we saw the prices stabilize for a few years but they never went backwards, it turns out that would have been a good time to buy. Year 2006 may have a little higher interest rates and a little higher prices on new homes because of material cost but this North Florida market is going to continue to grow and be strong in 2006! We have always been a strong Realtor and builder lender and didn’t rely on the refinance business so we are budgeting an increase in the 2006 mortgage production.
David Stelbrink & David Mordecai, First Bank Mortgage
I took out my crystal ball and even it refused to predict this industry. I believe that the housing market in Jacksonville and surrounding area will continue to be vibrant, slower perhaps than we have seen in the last three years but still healthy because of where we are and what this area has to offer. Rates will continue to go up, slowly, which in turn will affect the market, but not seriously. I see some lenders consolidating.
Companies that can have an impact on a very broad market segment will have an advantage and will be used more to insure that the best financing is used for each individual purpose.
Jim Dunlap, American Home Mortgage
I think the industry is heading toward more focus on technology-based services, and more focus on 100 percent financing alternatives for first-time home buyers. Mortgage companies will have to find unique ways to make themselves stand out in the crowd and perhaps offer more specialized services. I think Paragon Homefunding is poised to stand out and I am excited about all that we have on the horizon for 2006.
Rachel Rogers, Paragon Homefunding
My crystal ball shows a modest slow-down in the rate of overall activity as interest rates moderate back up into the mid to upper 6 percent range on 30 year fixed-rate mortgages.
Brad King, Wachovia Mortgage
I believe Jacksonville is a unique city when it comes to real estate. Many people believe the real estate “bubble” is going to burst soon but Jacksonville has so much more potential left. We have so much more land available and many areas that are still in need of rehabilitation. In 2006, Jacksonville will still have a strong economy and more room for growth. Wachovia will definitely be a major player in the mortgage industry and will be more of a household name.
Penda Tyson, Wachovia/Tyson Team
The industry should see a lot of shuffling in 2006. Many lenders have relied too much on the refinance market instead of focusing on a longer term plan. As this piece of the business continues to shrink, lenders who have continued to focus on purchase business will continue to gain market share. From a product standpoint more consumers will shift from pay option arms toward mid-range arms and fixed rate mortgages. Many consumers will continue to tap into their home’s equity; but more will do so with equity products as opposed to cash-out refinances.
David Beddard, Washington Mutual
We are blessed to be in an area that continues to see solid growth economically. Jacksonville and the surrounding communities in North Florida have grown steadily without some of the wild swings seen in other parts of the country. I expect to see that continue through 2006. Our employment base is not dominated by any single company or industry thereby insulating us from an unexpected collapse of a major employer.
As you look at the new developments going up, you will see not only new residents but also a significant number of trade ups will occur providing those of us in the real estate industry with ample opportunity to continue to grow and prosper. On the other hand, no one should take the continued opportunities for granted. Sales and service excellence will determine who remains successful.
Ray Breault, A1A Mortgage
In 2006, customers will want even more information at their fingertips and will focus on speed and availability of products. I believe the industry will move quickly in order to keep up with customer demands.
Cindy Barker, Gibraltar Mortgage
In 2006 we will find more conservative lending, reigning in some of the high-risk mortgage practices commonly seen today. I also see a short term spike in the cost building materials in concert with marginal interest rate hikes hurting speculative building especially in the Northeast and California.
I believe the Florida market, in general, will continue enjoy strong growth despite market corrections in other parts of the nation.
I also see an industry in transition, where user-friendly technology becomes more accessible to a greater range of real estate professionals. Those that embrace this change will enjoy a productivity increases unseen in recent years. Those that do not will begin to see a decline in their market share.
Deana Kilcommons, North Florida Closings