Monday, January 7, 2013

Northeast Florida Housing Market

Jacksonville, FL – Rising Home Prices Continue to Push Buyers to Act TrafficHome PricesIncentivesDecember Market Trends􀀦􀀦􀀧 (3,245 single-family permits in 2011, 27th largest market in the country) Traffic remains above agents’ expectations as buyers don’t want to get priced out of the market. Our buyer traffic index fell to 56 in December from 64 in November, indicating sequentially lower traffic levels (which is normal for this time of year) but overall activity remaining above agents’ expectations (any reading above 50 points to better than expected traffic levels). Agents continued to note a growing sense of urgency and even fear from buyers that they’ll miss out on unprecedented deals if they don’t act soon given the low rates and home prices. One agent noted, “More buyers due to low financing rates and fear of rising home prices in 2013.” Another agent commented, “Buyers realize inventory is low and home prices are moving up.” One agent even noted that if appraisals come in low due to recent price increases, some buyers are willing to pay the difference in cash in order to still make the deals work. “Buyers have a feeling that prices are rising.” Home prices continue to trend higher. Home prices improved for the fourth consecutive month in December, as our home price index increased to 75 from 64 in November, with readings above 50 pointing to higher prices over the past 30 days. This is the highest level we’ve seen in our home price index since we began surveying the market in 2006. The supply conditions remained favorable in December, as our home listings index came in at 63, down from 86 in November but still above a neutral reading of 50 (indicating falling supply). It also took less time to sell a home over the past 30 days, as our time to sell index came inJohn Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida Cell: 904-415-0171 Email: Web:

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