Monday, June 7, 2010

Jacksonville Housing Market

Jacksonville, FL – Buyers Lose Interest without the
Tax Credit

(3,320 single-family permits in 2009, 23rd largest market in the country)
Traffic falls in May after the tax credit expired. Buyer traffic fell in May after two consecutive months of higher readings, as our buyer traffic index fell sharply to 39 from 67 in April (readings below 50 point to traffic lower than agents’ expectations). The decline in traffic does not come as much of a surprise as the majority of positive commentary in our April survey was directly related to the benefits of the credit. However, agents also mentioned that a weaker economic outlook among buyers was also partly responsible for the slower demand, as buyers were hesitant to look at homes without better financial stability. The fear of potential job losses increased buyers’ anxiety. We expect demand to
remain slow over the next several months before seeing more consistent improvement
later this year. Prices decline moderately, and inventory levels trend higher. Prices remained under pressure in May, as our home price index came in at 39 (from 28 in April), staying below a neutral reading of 50 (readings below 50 point to lower prices over the last 30 days). Meanwhile, inventory levels continue to add risk to price stabilization, as our home listings index fell to 38 in May from 39 in April, pointing to higher inventory levels for the past month (readings below 50 point to higher inventory levels).

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