Wednesday, September 8, 2010

Jacksonville Area Real Estate Report

Jacksonville, FL – Job Worries and Tight Lending
Limit Pool of Buyers
(3,320 single-family permits in 2009, 23rd largest market in the country)

Buyer traffic remains at depressed levels. Buyer traffic inched up in August, as our
traffic index improved to 20 from 18 in July, but remains at depressed levels well below agents’ expectations (any reading below 50 indicates traffic levels below expectations). Agents primarily cited the challenging jobs environment as well as difficulty getting buyers qualified for loans as the reasons for the weak traffic levels. One agent noted, “Lenders are too strict on financing still.” Another agreed, saying buyers were worried about, “getting loan approvals and job security.” A third agent also had similar comments, noting traffic was less than expected due to, “unemployment and job insecurity.” One agent who saw healthier traffic trends said “low prices” were the driving force.

Home prices fall further as inventories increase. Home prices continued to decline in August, as our home price index fell to 22 from 25 in July, with readings below 50indicating lower prices over the last 30 days. Weak demand and higher inventory levels contributed to the declines. Our home listings index dropped to 35 in August from 54 in July, indicating a further rise in inventories following temporary stabilization last month(readings below 50 point to higher inventory levels). In addition, our time to sell index (a leading indicator of home prices reflecting both demand and inventory trends) deteriorated further in August. Our index fell to 25 from 39 in July, with readings below 50 indicating a longer time needed to sell a home over the past 30 days. The rising inventory and longer time needed to sell a home point to further price declines in the coming months.

John Holbrook - Realtor
Prudential Chaplin Williams Realty
Amelia Island, Florida 32034

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

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