Real Estate Forecast from Michael Bugg

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

People choose to relocate to Jacksonville because our city supports business growth and our quality of life is unmatched. When a company relocates here for those reasons, their employees follow and then realize what a great place Jacksonville is to live.

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?

At most, we feel that interest rates won't go up more than a point in the next year. If they do go up significantly, there are so many creative financing options in the market-adjustable rate mortgages, discounted points for purchasers and sellers willing to participate more in the process-that we feel the buyers and sellers will still have excellent options. If you look back at the history of rate increases, even when the rates were as high as 14 percent people were still buying homes because they got creative. In the condo market, interest rates really won't make a difference because the argument often becomes "rent vs. buy." People would rather be building equity in something they own.

What will be the three hottest areas in Northeast

Florida for real estate in 2005?

The Beaches will always be hot because people want to live near the ocean and that won't change. Other areas are also growing, specifically the 9A and Southside Boulevard corridor, where there's such a concentration of businesses. People want to live close to where they work, and that area offers easy access to I-95, J Turner Butler Boulevard and some of the best shopping in the city.

If you really think about it, though, everywhere in Jacksonville is hot. Arlington is selling well again, the Northside continues to grow quickly, Julington Creek is very popular and downtown neighborhoods like Springfield are becoming centers of revitalization.

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

The number one thing is the amount of water, including the Beaches and the riverfront. There are very few other cities where both are present. Also, I hear many people comment on the natural settings and the fact that our residents are lovely, very friendly people.