Real Estate Forecast from William A. Watson Jr.

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

The First Coast area has a reputation for quality schools, low housing costs and a wonderful lifestyle.

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?

Given today's climate, I expect the 30-year, fixed-rate mortgage to be in the 6.5 percent range through 2005. If that's the case, the monthly payment on an average-priced home would be roughly $100 per month higher than it is now. Job growth and income growth are also on the rise, however; which would make that $100 negligible.

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

We believe the hottest areas will continue to be the Beaches communities, northwest St. Johns County and Jacksonville" target="_blank">Clay County.

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

The diversity of the population, the geographic size of the market, housing affordability, quality of life and the fact that Jacksonville's citizens are so hospitable.