Monday, December 7, 2009

Jacksonville Housing Report

Jacksonville, FL – Traffic Up, but Signs of a Lull in Buying Emerge
(5,135 single-family permits in 2008, 18th largest market in the country)

Traffic increased, but buyers now lack urgency. Buyer traffic improved again in
November following the gains seen in October, as our traffic index improved to 45.5 from 36, indicating traffic levels essentially in-line with agents’ expectations for this time of year (a reading of 50 suggests traffic in-line with expectations). Agents said buyers remained active throughout the month following the extension of the tax credit, but that the traffic has not converted into sales as buyers lack urgency. “We have more calls but folks still are not buying,” according to one agent. Another noted, “Buyers are looking but with so much on the market, few actually buy.” Others commented that now that the tax credit has been extended through the spring selling season, buyers feel no sense of urgency to buy now
during the typically slow late fall/winter months and given the belief that home prices may fall further.

Prices remain under pressure despite lower inventory levels. Home prices continued
to fall in November, as our price index dropped to 14 from 29 in October, with any reading below 50 indicating lower home prices over the past 30 days. Prices remain under pressure as a result of the persistently high levels of foreclosures and short sales on the market, despite lower overall inventory levels. Our home listings index increased to 64 in November from 57 in October, with readings above 50 indicating lower inventory. However, foreclosures remain the key driver and will likely continue to pressure prices further in the coming months.

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

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