Wednesday, October 6, 2010

Jacksonville Area Real Estate Report

Jacksonville, FL – Traffic Falls as Buyer Expect More
Pain Ahead
3,320 single-family permits in 2009, 23rd largest market in the country
Traffic dips further below expectations. Our buyer traffic index fell again in September,coming in at 11, down from 20 in August, pointing to traffic well below agents’ expectations(readings below 50). The marks the lowest reading for Jacksonville since September 2008,and is the fourth consecutive month of lower than expected traffic. Agents commented thatbuyers were worried that the market hasn’t yet stabilized. Concerns centered on rushing into a home, only to miss out on a better deal in the near-future, while also being locked into a large mortgage. One agent said, “Buyers are looking, but they are afraid of what they might get themselves into.” According to another, “My clients are being more and
more patient. They think better deals are out there, and they want to make sure they get the best one.” Meanwhile, one agent highlighted that investor demand has started to wane, as they are also thinking they may get better deals down the road.

An increased time to sell spells trouble for more price declines. Agents said prices
continued to fall in September, as our home price index came in at 22, unchanged from
August, suggesting lower prices over the past month (readings below 50 point to
sequentially lower prices). Meanwhile, inventory levels edged higher according to agents, as our home listings index came in at 44, just shy of a neutral reading of 50suggesting higher inventories over the past 30 days. We remain concerned over Jacksonville’s inventory, as we think there is additional risk from shadow foreclosure inventory held by banks. Our time to sell index came in at 22, down from 25 in August, and further from a neutral reading of 50, suggesting an increased time to sell over the past month (readings
below 50).

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

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