Real Estate Forecast from Linda Sherrer

What are the region's strongest selling points in terms of relocation?

The quality of life, including the weather and an excellent location with the ocean, the river and lakes. Affordable housing near employment centers is also important to people. Other points would be our business-friendly government and clean industries.

Interest rates have started to tick back up. What is your forecast for mortgage interest rates in 2005? How high would they have to go to hurt the market?

For every quarter of a percent that mortgage interest rates rise, an additional 200,000 families nationwide will be unable to qualify for a mortgage. I believe that between 2005 and 2006, if the economy continues to improve, jobs increase and inflation is low, we could see interest rates up to 8 percent.

I think when you get to double-digit interest rates, it causes people to stop and think twice about investing and purchasing, but as I've said, even with a 21 percent interest rate, they still bought homes.

What will be the three hottest areas in Northeast Florida for real estate in 2005?

The 210 corridor, Cecil Commerce Center and downtown.

What is the most pleasant surprise potential relocators discover about the region as they are home shopping?

How involved you can become in the community if you choose to make a difference and how friendly people are. Jacksonville has a small-town atmosphere and it's very welcoming. The comments we hear most often about houses are how glamorous our bathrooms are and how much we truly live outdoors, with summer kitchens, pools and cabanas.