Wednesday, March 9, 2011

Jacksonville Area Real Estate Report

Jacksonville, FL – Attractive Pricing Helps Drive Traffic

3,381 single-family permits in 2010, 26th largest market in the country
Traffic meets expectations as buyers look for deals. Buyer traffic met agents’
expectations in February after beating expectations in January, as our buyer traffic index came in at 50 (from 70 in January), in-line with a neutral reading (readings of 50 point to traffic in-line with expectations). Agents noted that buyers remained interested in getting deals in February. According to one agent, “low home prices are motivating buyers to act.” Another mentioned, “It appears that buyers have decided that prices have bottomed out.” The agents’ commentary reflects themes from our January survey, in which agents said buyers were also out looking for low prices and bargains. Rising interest rates have also factored into buyers’ decision making, as agents noted that buyers wanted to lock in low rates now before costs become too high. One agent mentioned that “higher interest rates have drawn people into the market.”

Prices fall further though buyers respond well to lower prices as time to sell is
unchanged. Home prices fell again in February as our home price index came in at 30,
unchanged from our reading in January, and remaining below a neutral reading of 50,
pointing to lower prices over the past month (readings below 50). We continue to believe these declines are driven by actions to quickly move inventory, as the lower prices have driven better traffic. Inventory levels were higher in February as our home listings index came in at 40 (from 70 in January), with readings lower than 50 pointing to sequentially higher inventory levels. Our time to sell index came in at 45 in February (from 40 in January), in-line with a neutral reading of 50, pointing to an unchanged time to sell over the past month. The time to sell has steadily improved in Jacksonville in recent months, which we think is the result of buyers’ positive response to better pricing.

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

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