Thursday, October 8, 2009

Jacksonville Market update

Jacksonville, FL – Demand Fades Further as Buyers See Fewer Opportunities
(5,135 single-family permits in 2008, 18th largest market in the country)
Traffic shows further signs of deterioration as first-time buyer demand slows. Buyer
traffic worsened again in September as our traffic index slipped to 27 from 30 in August, marking a worrisome pullback to levels well below agents’ expectations over the past two months after our index reached 54 in July (any reading below 50 suggests traffic below agents’ expectations). Agents cited a variety of concerns, but the primary ones were continued concerns over the weak job market and economy, a lack of quality low-priced inventory, and perhaps most importantly an apparent slowdown in first-time buyer demand.

While some agents disagreed and noted traffic is still good on low end homes, others said buyers became less interested in September as they became more concerned that if they bought a home now they would still have trouble meeting the November 30th closing deadline to receive the tax credit. We anticipate hearing more of these anecdotes in October as the closing timeframe becomes even more compressed. Prices fall further on weaker demand. Home prices remained under pressure in September, likely as a result of the weak demand, although fewer agents noted declining prices relative to last month as our price index improved to 36 from 20 in August (readings below 50 point to lower home prices over the past 30 days). In addition, agents noted higher inventories this month after indicating declining inventory over the prior two months. Our home listings index fell to 36 from 60, with readings below 50 indicating rising inventory.

John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida
Cell: 904-415-0171 Email: Web:

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