Northeast Florida Housing Report.

Jacksonville, FL – Attractive Pricing Makes the Wheels Start Turning Again(3,381 single-family permits in 2010, 26th largest market in the country)

Traffic improves as low prices lure buyers. Buyer traffic bounced back modestly in July after falling sharply in June, as our traffic index increased to 42 from 37. This is still modestly below agents’ expectations (as measured by a reading of 50), but points to sequential improvement and suggests that buyers in Jacksonville may have just needed a breather in June after a solid spring (June was the first time in 7 months that traffic failed to meet expectations in our survey). Comments about the attractive pricing and affordability were abundant once again, although agents also mentioned that demand has begun to broaden out beyond just the low end. According to one agent, “More people are looking in all price ranges. Especially in higher end homes, there are many more cash buyers.” Another agent commented, “Prices are low, inventory is low, spurring buyers to make a decision; fewer choices make deciding easier.”

Prices fall as sellers work to spur demand. Not surprisingly, home prices fell again in July, consistent with agent commentary that lower prices were responsible for the uptick in demand. Our home price index fell to 25 in July from 43 in June, well below a neutral reading of 50 (readings below 50 point to sequentially lower prices). We expect further declines, as sellers recognize that buyers remain price sensitive. Inventory levels at least declined in July, as our home listings index improved to 58 from 54 in June, above a neutral reading of 50. However, our time to sell index still indicated a longer time needed to sell a home, dropping to 21 in July from 36 in June (readings below 50 point to a longer time to sell).

This bears watching, as an increased time to sell is typically a negative
indicator for future pricing trends.

John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, FloridaCell: 904-415-0171 Email: holbrook66@msn.com Web: www.nassaumls.net
www.johnholbrook.blogspot.com