Sunday, August 8, 2010

Northeast Florida Housing Market

Jacksonville, FL –Buyers Continue to Voice
Concerns over Job Security, Home Prices

(3,320 single-family permits in 2009, 23rd largest market in the country)
Traffic falls further; index reaches lowest level since November ’08. Buyer traffic fell again in July, as our traffic index fell to 18 from 21 in June, pointing to traffic remaining below agents’ expectations (readings below 50). Agents cited the decreased consumer confidence and buyers’ concerns over their future employment prospects. According to those surveyed, buyers were not only worried about the security of their jobs, but also the security of the market. One agent highlighted that buyers expect “further price declines before the true recovery begins”. Another mentioned that buyers have become increasingly nervous since the tax credit expired.

This is similar to commentary from our June survey, in which buyers were concerned over the economy and agents felt the tax credit pulled buyers away from the summer by condensing demand into the February-April timeframe. Home prices continue fall, but inventories remain stable. Home prices continued to face pressure in July. Our home price index came in at 25 (from 21 in June), pointing to lower prices over the last 30 days (readings below 50). Meanwhile, our home listings index pointed to stable inventory levels for the month of July, improving to 54 from 36 in June, inline with a neutral reading of 50 (readings of 50 suggest unchanged inventories). We believe that the stable inventory reading is a positive indicator for future pricing, but remain concerned over the potential level of shadow foreclosure inventory held by banks.

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

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