AMELIA ISLAND – SECOND HOME ADVANTAGES
Amelia Island is a terrific place for a second home or vacation getaway. Real estate prices in Nassau County range from competitive to enviable when compared to other coastal communities. Whether in need of a single family home or a condo, Amelia Island has something for everyone with a variety of price ranges and ammenities. The combination of clean, uncrowded beaches, friendly island hospitality, historic downtown, and world class hotels and restaurants are a rarity. Unlike many other island and resort destinations, the island has its own community hospital and easy access to Jacksonville International Airport.
Local entrepreneurs have had a strong, positive influence on our second home market by creating reliable and simple solutions for those living full time elsewhere and owning locally. Concierge and property management services help ease the hassles and fears of long distance property ownership.
Property managers provide a lengthy list of conveniences and services which include, but are not limited to, house keeping on arrival and departure, hiring lawn, landscape and pool services, handling maintenance and repairs, mail and package delivery and regularly scheduled property inspections. During inclement weather it is reassuring to know that someone is keeping an eye on your home and will not only contact you if needed but arrange for necessary repairs or servicing. Even if the second home in a condominium and has an association caring for the exterior, that obligation usually ends at the front door. Having a reputable and trusted property manager will insure the safety of your interior as well.
Concierge services may include everything from transporation to and from the airport, arranging car rental, restaurant reservations, dry cleaning pick up and drop off, to stocking the kitchen pantry. With an experienced concierge, even tee times, kayak excursions and fishing trips can be waiting for you on arrival.
According to a recent survey, 6.4 million people are currently second home owners and by the year 2010 the number is expected to increase to 10 million. Even in the current real estate market slowdown, Florida continues to be a desirable vacation and retirement destination. Advances in technology and the baby boomer mind set make more frequent vacations and time spent away from work on the increase. Second homes allow an escape from the daily routine, a place to relax with family friends and frequently becomes the primary home at retirement.
Second home ownership can lead to financial reward through long term investment and allows for tax advantages such as mortgage interest deductions. With the recent passage of Amendment 1, Florida second home owners are now receiving some protection from spiking tax increases which could result from future rising property valuations.
The current availability of properties at stabilizing prices, historically low interest rates and all that Amelia Island has to offer makes this a terrific time to make Amelia Island your second home.
Wednesday, August 13, 2008
Monday, August 11, 2008
Amelia Market News
An Amelia Island networking group called the "Amelia Business Network" has formed a new website to provide market information about Amelia Island, Fernandina Beach and Yulee business markets. You can view information at http://www.ameliamarketnews.com
International Sales
Canadians, aided by a strong Canadian dollar, were the No. 1 group of international buyers, accounting for nearly a quarter of all foreign buyers in the year ended May 2008. That was nearly twice the share the Canadians represented a year earlier.Florida was the choice for 33 percent of all Canadian purchases in the United States.Mexicans, who were the No. 1 group of international buyers last year, dropped to third place, behind the British and Canadians. Forty-two percent of all British buyers chose Florida.Rounding out the top six were: China, India, and Germany. Buyers from China favored California, which captured 25 percent of their U.S. purchases, but Florida was No. 2 with 11 percent. Fifty-four percent of German buyers picked the Sunshine State.After Florida, other top states for foreign buyers are California, Arizona and Texas.Despite the current downturn, 35.5 percent of Florida Realtors surveyed said their international business has grown in the past five years, the report said. Some 52.6 percent in Florida reported their foreign business remained about the same, and only 11.8 percent indicated foreign business had decreased.Thirty-eight percent of the Realtors thought the weak dollar was having a significant impact on foreign buyers looking in the United States, the study said.But there were also some factors putting the brakes on U.S. purchases. 'While U.S. real estate is still considered a 'safe haven' for foreign funds, there are some perceived impediments to foreign purchases including cost of property, immigration laws, and property taxes," the report said.Copyright © 2008, The Miami Herald, Martha Brannigan. Distributed by McClatchy-Tribune Information Services.
Friday, July 18, 2008
Property Taxes
Amendment 5 to have its day in courtTALLAHASSEE, Fla. – July 17, 2008 – If Florida voters pass Amendment 5 in November, property taxes will drop by 25-40 percent, but the amendment must first face a court challenge. A Tallahassee judge will hear arguments on Aug. 13, and the Florida Association of Realtors (FAR), which supports the amendment, anticipates a favorable ruling.In the court case, amendment opponents, including state Sen. Mike Haridopolos (R-Indialantic), claim that taxes do not get lowered under Amendment 5, they simply get paid in a different manner, and Florida lawmakers must find other ways to raise the money. That creates a challenge for Haridopolos, the next president of the Florida Senate, since he would have to find state budget money to compensate for the property tax cut. Finding additional revenues would probably include at least a 1 percent increase in the state sales tax, but other measures would also be considered.Former Senate President John McKay (R-Bradenton) leads the charge in favor of the amendment, along with FAR. Haridopolos has challenged McKay to a series of debates around Florida to discuss Amendment 5 prior to the election. Haridopolos says he has scheduled debates on the following dates at 1 p.m. (except St. Petersburg at 1:30 p.m.); however, it’s not clear if McKay will be available for all of them:July 22: Broward Community CollegeJuly 28: Edison Community College (Fort Myers)July 29: Valencia Community College (Orlando)Aug. 4: Florida Community College (Jacksonville)Aug. 6: Santa Fe Community College (Gainesville)Aug. 7: St. Petersburg College (Seminole)Aug. 11: Miami-Dade CollegeAug. 12: Indian River State College (Fort Pierce)Aug. 13: Gulf Coast Community College (Panama City)Aug. 18: Tallahassee Community College“We look forward to a thoughtful and candid discussion with Mr. McKay on the merits of Amendment 5,” says Haridopolos. Other industries opposing Amendment 5 include: Associated Industries of Florida, the Florida Association of District School Superintendents, Association of School Administrators, Florida Farm Bureau Federation, National Federation of Independent Business-Florida and the Florida Institute of CPAs.Source: Pensacola News Journal, July 17, 2008, Bill Cotterell
Tuesday, June 17, 2008
North Hampton Community photos
Clubhouse and pool area at North Hampton. Recreation space includes a community pool, soccer field, basketball court, tennis courts and playground area. The lofton Creek Outpost featues a canoe and kayak launch as well as a fishing station, oyster roast pit and screened pavilion.
Search for North Hampton Homes at http://www.nassaumls.net
Check out the video below of a North hampton House for sale.
Marsh Hen Home
1.45 acre lot with fenced rear yard and magnificent old growth trees. Located just a few minutes from Amelia Island off of Barnwell Road. Vaulted ceilings with plenty of bright space and sunlight. The master is on the main floor and 2 bedrooms and one bath are upstairs. Open floor plan with large fireplace. Wood floors, jet tub, front porch for relaxing, private well. Close to Jaacksonville as well as King's Bay. Offered at $360,000. Contact John Holbrook 904-415-0171 for more information.
Monday, June 16, 2008
Housing Stats
Florida existing home sales improve in April compared to March 2008 Related Story:
Existing home sales ease due to mortgage restrictions, says NAR
ORLANDO, Fla. – May 23, 2008 – Florida Realtors® statewide reported an upswing in existing home and condominium sales from March to April 2008, according to the latest housing statistics released by the Florida Association of Realtors® (FAR). A total of 11,200 existing single-family homes changed hands in April, a 20 percent increase over the previous month when 9,330 homes sold. Existing condo sales statewide rose 21.6 percent, with 3,900 units sold in April compared with 3,207 condos in March.
The median price for existing condos increased slightly as well during the one-month period. The median price of an existing condo in April was $179,200, up 1.6 percent from March’s figure of $176,300.
In the latest National Association of Realtors® (NAR) housing outlook, Chief Economist Lawrence Yun predicts that home sales and prices throughout most of the nation will improve in the second half of the year, especially if access to mortgages backed by the Federal Housing Administration, Fannie Mae or Freddie Mac increases. “There are many reasons for people to get into the housing market today, and very few reasons not to,” Yun says. “With the plentiful supply of homes for sale at affordable prices, interest rates approaching 40-year lows, and the strong track record of housing as a good long-term investment, conditions are ripe for buyers.”
In the year-to-year comparison, a total of 11,200 existing homes sold statewide last month while 12,358 homes sold in April 2007 for a decrease of 9 percent, according to FAR. Florida’s median sales price for existing homes last month was $198,900; a year ago, it was $239,000 for a 17 percent decrease. But, looking back to April 2003, the statewide median sales price for single-family homes has increased about 30.9 percent over the five-year-period, according to FAR records – at that time, the statewide existing-home median price was $151,900. The median is the midpoint; half the homes sold for more, half for less.
Existing home sales ease due to mortgage restrictions, says NAR
ORLANDO, Fla. – May 23, 2008 – Florida Realtors® statewide reported an upswing in existing home and condominium sales from March to April 2008, according to the latest housing statistics released by the Florida Association of Realtors® (FAR). A total of 11,200 existing single-family homes changed hands in April, a 20 percent increase over the previous month when 9,330 homes sold. Existing condo sales statewide rose 21.6 percent, with 3,900 units sold in April compared with 3,207 condos in March.
The median price for existing condos increased slightly as well during the one-month period. The median price of an existing condo in April was $179,200, up 1.6 percent from March’s figure of $176,300.
In the latest National Association of Realtors® (NAR) housing outlook, Chief Economist Lawrence Yun predicts that home sales and prices throughout most of the nation will improve in the second half of the year, especially if access to mortgages backed by the Federal Housing Administration, Fannie Mae or Freddie Mac increases. “There are many reasons for people to get into the housing market today, and very few reasons not to,” Yun says. “With the plentiful supply of homes for sale at affordable prices, interest rates approaching 40-year lows, and the strong track record of housing as a good long-term investment, conditions are ripe for buyers.”
In the year-to-year comparison, a total of 11,200 existing homes sold statewide last month while 12,358 homes sold in April 2007 for a decrease of 9 percent, according to FAR. Florida’s median sales price for existing homes last month was $198,900; a year ago, it was $239,000 for a 17 percent decrease. But, looking back to April 2003, the statewide median sales price for single-family homes has increased about 30.9 percent over the five-year-period, according to FAR records – at that time, the statewide existing-home median price was $151,900. The median is the midpoint; half the homes sold for more, half for less.
Friday, April 4, 2008
Retirement Communities
Life-fulfilling communities: An inspired concept
JACKSONVILLE, Fla. – April 4, 2008 – Praxeis doesn’t develop retirement communities. Don’t even use that word in earshot of the company’s executives.
Praxeis creates a “Life Fulfilling Community,” a phrase trademarked by the Jacksonville-based company.
And it’s putting those communities, marketed to people 62 and older, in the vicinity of college campuses, those bastions of intellectual challenge and wild party nights.
The university connection is part of Praxeis’ business strategy, which seeks to get beyond the stereotypical view of older adults merely winding down their lives, said Dick Ambrosius, vice president of cultural resources.
“There’s not a business in the country that’s not going to be impacted by the demographic shift,” he said. “At no point in our history have older adults dominated the market.” He added, “Some companies get it, but some still market to the old model of, ‘I’ve fallen and I can’t get up.’ Older people have been buying a lot of products over the years in spite of the advertising, not because of it.”
Praxeis, which operates at an office in Ortega, developed Oak Hammock at the University of Florida in Gainesville in 2004. The $132 million development is near full occupancy, according to the company.
The company is turning its attention to Florida State University for a community called Westcott Lakes. The goal is to open it in 2010 in SouthWood, a St. Joe development in Tallahassee.
Praxeis also is working with the University of Kentucky and the University of South Florida on plans for similar communities.
The company’s first community was The Glenridge on Palmer Ranch in Sarasota. It’s not affiliated with a university.
Ambrosius said over the years, communities catering to people 62 and older have expanded their on-site fitness program, such as weight rooms and pools. In the same way, he said, residents want activities that keep them mentally fit. He points to medical research showing older adults don’t reach a point where their brains stop adjusting neurologically to new experiences.
The research has suggested people who do brain-stimulating activities have a better chance of avoiding memory loss and even Alzheimer’s.
“The old model was doing crosswords puzzles,” Ambrosius said. “But further research has shown it’s that and more. If you really want to stave off Alzheimer’s, learn a new language. Take up Sudoku.” Being in a college town gives residents the ability to live like a college student in terms of taking classes and going to cultural events but avoid big-city hassles like traffic, he said.
At Westcott Lakes, the entrance fee ranges from $268,000 to $1.3 million. Prices at the high end put residents into a plan that will refund 95 percent of the fee when a resident moves out or dies.
Residents also pay a monthly fee ranging from $2,430 to $5,430, depending on the size of residence. They must be active and independent at the time they move in, but from then on, they would be guaranteed lifetime services for assisted living and skilled nursing.
Praxeis doesn’t have any plans for developing a community in connection with the University of North Florida, though Ambrosius said that would have one definite advantage for the company’s employees – they wouldn’t have to travel so far for the meetings that go into getting a community off the ground.
Copyright © 2008 The Florida Times-Union, Jacksonville. Distributed by McClatchy-Tribune Information Services.
JACKSONVILLE, Fla. – April 4, 2008 – Praxeis doesn’t develop retirement communities. Don’t even use that word in earshot of the company’s executives.
Praxeis creates a “Life Fulfilling Community,” a phrase trademarked by the Jacksonville-based company.
And it’s putting those communities, marketed to people 62 and older, in the vicinity of college campuses, those bastions of intellectual challenge and wild party nights.
The university connection is part of Praxeis’ business strategy, which seeks to get beyond the stereotypical view of older adults merely winding down their lives, said Dick Ambrosius, vice president of cultural resources.
“There’s not a business in the country that’s not going to be impacted by the demographic shift,” he said. “At no point in our history have older adults dominated the market.” He added, “Some companies get it, but some still market to the old model of, ‘I’ve fallen and I can’t get up.’ Older people have been buying a lot of products over the years in spite of the advertising, not because of it.”
Praxeis, which operates at an office in Ortega, developed Oak Hammock at the University of Florida in Gainesville in 2004. The $132 million development is near full occupancy, according to the company.
The company is turning its attention to Florida State University for a community called Westcott Lakes. The goal is to open it in 2010 in SouthWood, a St. Joe development in Tallahassee.
Praxeis also is working with the University of Kentucky and the University of South Florida on plans for similar communities.
The company’s first community was The Glenridge on Palmer Ranch in Sarasota. It’s not affiliated with a university.
Ambrosius said over the years, communities catering to people 62 and older have expanded their on-site fitness program, such as weight rooms and pools. In the same way, he said, residents want activities that keep them mentally fit. He points to medical research showing older adults don’t reach a point where their brains stop adjusting neurologically to new experiences.
The research has suggested people who do brain-stimulating activities have a better chance of avoiding memory loss and even Alzheimer’s.
“The old model was doing crosswords puzzles,” Ambrosius said. “But further research has shown it’s that and more. If you really want to stave off Alzheimer’s, learn a new language. Take up Sudoku.” Being in a college town gives residents the ability to live like a college student in terms of taking classes and going to cultural events but avoid big-city hassles like traffic, he said.
At Westcott Lakes, the entrance fee ranges from $268,000 to $1.3 million. Prices at the high end put residents into a plan that will refund 95 percent of the fee when a resident moves out or dies.
Residents also pay a monthly fee ranging from $2,430 to $5,430, depending on the size of residence. They must be active and independent at the time they move in, but from then on, they would be guaranteed lifetime services for assisted living and skilled nursing.
Praxeis doesn’t have any plans for developing a community in connection with the University of North Florida, though Ambrosius said that would have one definite advantage for the company’s employees – they wouldn’t have to travel so far for the meetings that go into getting a community off the ground.
Copyright © 2008 The Florida Times-Union, Jacksonville. Distributed by McClatchy-Tribune Information Services.
Wednesday, February 13, 2008
Amelia National
Amelia National Golf & Country Club
By: John Holbrook
Amelia National is geared to those well acquainted with the finest private golf clubs. The community features an 18-hole course of stellar natural beauty designed by Tom Fazio, designed for Championship play, yet forgiving enough for the nonprofessional to enjoy again and again. A par 72 with tee positions ranging in length from 7,166 yards to 5,198 yards.
Amenities include:
- An eight acre practice facility with a driving range, practice bunker, chipping and putting greens.
- Private golf instruction with a knowledgeable and experienced PGA teaching staff.
- Three lighted hard tru tennis courts.
- Stunning new French Provincial Clubhouse designed especially for the camaraderie that is a grand tradition among private golf clubs.
- Fitness center with Lifefitness State-of –the-Art equipment with integrated LCD TV monitors.
- Resort style pool set among lushly landscaped gardens is a delightful place to meet friends, neighbors or just send the kids for the afternoon.
Featured Builders:
- ICI Homes. Since its founding in 1980, ICI Homes mission has been to provide home buyers with the highest quality craftsmanship, innovative designs, and personal service, at the best possible value
- Morrison Homes. Building a new home is an exciting experience. Morrison Homes also believes it should be an enjoyable experience from the start until the new home is finished. Morrison Homes is an award winning, national home builder that creates beautiful homes showcasing quality construction and value.
- David Weekley Homes. You won’t find another builder who values imagination more than David Weekley Homes. Homebuyers work directly with a builder to ensure that their needs are met. The company’s focus is giving its customers innovative design, a long list of choices to personalize their homes, and inspired service.
- American Homebuilders. Their mission and that of the company is to provide comfort and value for their home buyers. In 2006, American Homebuilders introduced the Woman-Centered Home. This new concept in home design and construction presents four unique home comfort zones.
Presented by John Holbrook - Realtor
By: John Holbrook
Amelia National is geared to those well acquainted with the finest private golf clubs. The community features an 18-hole course of stellar natural beauty designed by Tom Fazio, designed for Championship play, yet forgiving enough for the nonprofessional to enjoy again and again. A par 72 with tee positions ranging in length from 7,166 yards to 5,198 yards.
Amenities include:
- An eight acre practice facility with a driving range, practice bunker, chipping and putting greens.
- Private golf instruction with a knowledgeable and experienced PGA teaching staff.
- Three lighted hard tru tennis courts.
- Stunning new French Provincial Clubhouse designed especially for the camaraderie that is a grand tradition among private golf clubs.
- Fitness center with Lifefitness State-of –the-Art equipment with integrated LCD TV monitors.
- Resort style pool set among lushly landscaped gardens is a delightful place to meet friends, neighbors or just send the kids for the afternoon.
Featured Builders:
- ICI Homes. Since its founding in 1980, ICI Homes mission has been to provide home buyers with the highest quality craftsmanship, innovative designs, and personal service, at the best possible value
- Morrison Homes. Building a new home is an exciting experience. Morrison Homes also believes it should be an enjoyable experience from the start until the new home is finished. Morrison Homes is an award winning, national home builder that creates beautiful homes showcasing quality construction and value.
- David Weekley Homes. You won’t find another builder who values imagination more than David Weekley Homes. Homebuyers work directly with a builder to ensure that their needs are met. The company’s focus is giving its customers innovative design, a long list of choices to personalize their homes, and inspired service.
- American Homebuilders. Their mission and that of the company is to provide comfort and value for their home buyers. In 2006, American Homebuilders introduced the Woman-Centered Home. This new concept in home design and construction presents four unique home comfort zones.
Presented by John Holbrook - Realtor
10 best places for house bargains
ORLANDO, Fla. – Feb. 12, 2008 – The best place to get a bargain on a home is an area where there is healthy job growth and more houses available than people to buy them.These are markets “where you have high inventories but pliable borrowers, with lenders willing to deal,” says Anthony Sanders, a professor of finance at Arizona State University.Forbes magazine went looking for markets where the damage from risky lending hasn’t been as dramatic as in some parts of the country and where employment growth will burn off an over-abundance of inventory quickly.Here are the magazine’s 10 best cities for bargain house hunters.
1. Salt Lake City, Utah. Developers have gotten ahead of the demand, but the city is adding jobs more quickly than practically any place else in the country.
2. Raleigh, N.C. Another place where building got ahead of the curve, but the economy is expanding quickly.
3. Orlando, Fla. This part of the state had fewer speculators than Miami and Tampa, and it’s adding jobs faster than those cities as well.
4. Charlotte, N.C. The financial industry is moving here, adding jobs, but the inventory of unsold homes is still significant.
5. Phoenix. This city had a high foreclosure rate, but the economy is growing and people are still moving here in large numbers.
6. Seattle. The city’s port has profited from the weak dollar, but the housing price growth has slowed.
7. Las Vegas. This market was hit hard by foreclosures, but the growing economy makes the huge inventory less toxic than it is many places.
8. Jacksonville, Fla. The foreclosure rate is slower than the rest of the Florida cities, making the large inventory likely to improve.
9. Richmond, Va. There is only one foreclosure per 1,103 households here (compared to 1 in 33 in Detroit). Still, there are plenty of homes on the market.
10. Houston. Homes in Houston have long been a bargain. While there have been plenty of foreclosures, the population and the economy are expanding.
Source: Forbes, Matt Woolsey (02/07/08)© Copyright 2008 INFORMATION, INC. Bethesda, MD (301) 215-4688
John Holbrook
Prudential Chaplin Williams Realty
904-415-0171
ORLANDO, Fla. – Feb. 12, 2008 – The best place to get a bargain on a home is an area where there is healthy job growth and more houses available than people to buy them.These are markets “where you have high inventories but pliable borrowers, with lenders willing to deal,” says Anthony Sanders, a professor of finance at Arizona State University.Forbes magazine went looking for markets where the damage from risky lending hasn’t been as dramatic as in some parts of the country and where employment growth will burn off an over-abundance of inventory quickly.Here are the magazine’s 10 best cities for bargain house hunters.
1. Salt Lake City, Utah. Developers have gotten ahead of the demand, but the city is adding jobs more quickly than practically any place else in the country.
2. Raleigh, N.C. Another place where building got ahead of the curve, but the economy is expanding quickly.
3. Orlando, Fla. This part of the state had fewer speculators than Miami and Tampa, and it’s adding jobs faster than those cities as well.
4. Charlotte, N.C. The financial industry is moving here, adding jobs, but the inventory of unsold homes is still significant.
5. Phoenix. This city had a high foreclosure rate, but the economy is growing and people are still moving here in large numbers.
6. Seattle. The city’s port has profited from the weak dollar, but the housing price growth has slowed.
7. Las Vegas. This market was hit hard by foreclosures, but the growing economy makes the huge inventory less toxic than it is many places.
8. Jacksonville, Fla. The foreclosure rate is slower than the rest of the Florida cities, making the large inventory likely to improve.
9. Richmond, Va. There is only one foreclosure per 1,103 households here (compared to 1 in 33 in Detroit). Still, there are plenty of homes on the market.
10. Houston. Homes in Houston have long been a bargain. While there have been plenty of foreclosures, the population and the economy are expanding.
Source: Forbes, Matt Woolsey (02/07/08)© Copyright 2008 INFORMATION, INC. Bethesda, MD (301) 215-4688
John Holbrook
Prudential Chaplin Williams Realty
904-415-0171
Tuesday, February 5, 2008
January 2008 Housing Stats
Nassau County Closed Sales MLS Stats as of 2/5/08
Jan 2006 Jan 2007 Jan 2008
Homes 68 55 25
Condos 27 10 5
Lots 18 5 4
B of A Monthly Real Estate Agent Survey
Traffic Aided by Lower Mortgage Rates and Home Prices, Buyers Still Cautious
Affordability tends to drive sales activity; mortgage rates are critical. We
believe that affordability is the key determinant of sales and that the downturn in
sales activity since mid-’05 was driven by the lack of affordability as home prices
and mortgage rates both increased and limited the pool of potential buyers. We
think the improving affordability will translate into better sales activity as the year
progresses.
Pricing pressure continues as a result of high inventory levels. Our price index
increased modestly to 20 in January from 18 in December (readings below 50
indicate sequentially lower prices). We think these price declines are likely to
continue throughout ’08 based on the high level of existing home inventory, but
think the better affordability may help to limit the declines.
Jacksonville, FL – Few Transactions, Concentrated Among
Aggressively Priced Homes
Little incremental change as bargain hunters circle but few others dare to step in.
Our traffic index was essentially unchanged in January at 35.1 from 32.8 in December,
still below agents’ expectations (readings below 50 suggest traffic below agents’
expectations). Similar to last month, several agents saw higher call volume and
showings than in the fall, but only on homes with sharply reduced pricing. “Price adjustments
have brought out more buyers looking for deals.”Still, most agents remain cautious as
lending conditions remain challenging and buyers fear further price declines given the
huge oversupply of homes for sale.
Prices continue to spiral lower. Price declines showed no signs of slowing in January,
as our price index came in at 17.1 (from 11.3 in December), far short of a neutral
reading Agentssaw a large increase in short sale and foreclosed properties coming onto the market with huge price reductions, but with little demand inventories continued to build (in
contrast to the normal seasonal decline in January). Our home listings index increased
to 38.9 in January from 27.6 in December, with readings below 50 indicating rising
inventory. We think inventory will continue to climb through spring as more
foreclosures hit the market, leading to additional severe price declines throughout the year.
Jan 2006 Jan 2007 Jan 2008
Homes 68 55 25
Condos 27 10 5
Lots 18 5 4
B of A Monthly Real Estate Agent Survey
Traffic Aided by Lower Mortgage Rates and Home Prices, Buyers Still Cautious
Affordability tends to drive sales activity; mortgage rates are critical. We
believe that affordability is the key determinant of sales and that the downturn in
sales activity since mid-’05 was driven by the lack of affordability as home prices
and mortgage rates both increased and limited the pool of potential buyers. We
think the improving affordability will translate into better sales activity as the year
progresses.
Pricing pressure continues as a result of high inventory levels. Our price index
increased modestly to 20 in January from 18 in December (readings below 50
indicate sequentially lower prices). We think these price declines are likely to
continue throughout ’08 based on the high level of existing home inventory, but
think the better affordability may help to limit the declines.
Jacksonville, FL – Few Transactions, Concentrated Among
Aggressively Priced Homes
Little incremental change as bargain hunters circle but few others dare to step in.
Our traffic index was essentially unchanged in January at 35.1 from 32.8 in December,
still below agents’ expectations (readings below 50 suggest traffic below agents’
expectations). Similar to last month, several agents saw higher call volume and
showings than in the fall, but only on homes with sharply reduced pricing. “Price adjustments
have brought out more buyers looking for deals.”Still, most agents remain cautious as
lending conditions remain challenging and buyers fear further price declines given the
huge oversupply of homes for sale.
Prices continue to spiral lower. Price declines showed no signs of slowing in January,
as our price index came in at 17.1 (from 11.3 in December), far short of a neutral
reading Agentssaw a large increase in short sale and foreclosed properties coming onto the market with huge price reductions, but with little demand inventories continued to build (in
contrast to the normal seasonal decline in January). Our home listings index increased
to 38.9 in January from 27.6 in December, with readings below 50 indicating rising
inventory. We think inventory will continue to climb through spring as more
foreclosures hit the market, leading to additional severe price declines throughout the year.
Key Factors for Florida Growth
Worth The Read
Let’s take a look at some of the opportunities and positive indicators for the future of Florida’s real estate market.
Long-term economic and demographic trends continue to favor Florida. By 2010 it has been forecast that Florida will be the third most populated state in the country. Florida’s population is expected to increase about 75 percent by 2030. Florida demonstrates a long history of strong growth. It has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often it has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic growth such as new jobs and growing incomes. All of which is good for real estate.
People are continuing to move here. It’s estimated that 1,000 people move here every day (www.stateofflorida.com, “Florida Quick Facts”). No wonder Florida’s population has grown 13.4% since 2000, compared to only 6.4% for the rest of the country, according to census data.
Five of the top 15 cities in the Milken Institute’s 2007 “Best Performing Cities” survey, which looks at sustainable economic growth, are in Florida, including the No. 1 city, Ocala. A total of 13 Florida cities are in the top 50.
Low unemployment. Almost 120,000 jobs were created in Florida in the year between August 2006 and August 2007. Florida’s unemployment rate has hovered at or under 4% for a long time; and was 4% in August 2007, according to the latest data available from the U.S. Department of Labor. That not only puts it well below the national unemployment average, it also is the lowest unemployment rate among all ten of the most populous states.
Jobs are plentiful, and that trend will continue. A recent study by Bizjournals called “Where the Jobs Are” found that 7 of the hottest 15 job markets are in Florida.
Let’s take a look at the weather. If you think the hurricanes we experienced are going to have long-term effects on the Florida real estate market, consider this tidbit from Fortune Magazine. It recently reported, “Economists and geographers who have studied how natural disasters affect real estate values have generally found there to be no lasting impact.” Example #1: When Hurricane Hugo hit Charleston, S. C., home values were actually higher one year later. Example #2: That same year, 1989, a huge earthquake made big news in San Francisco, and the same thing happened—house prices went up.
Grant Thrall, a professor of what’s called Economic Geography, explains this phenomenon this way—residents move away and home prices fall only when natural disasters start becoming regular occurrences in an area, not when they happen periodically. And while the hurricane seasons of 2004 and 2005 may still be fresh in our minds, the fact is, historically it was a fluke. Eight storms hit the Florida mainland in those two years. But if you look back at the 50 years prior, only six Category 3 or higher storms hit the Florida mainland in half a century.
Gov. Charlie Crist, state lawmakers and business groups are committed to finding real solutions to the escalating costs and shortage of property insurance in Florida, as well as much-needed property tax reform. Florida Realtors will continue working closely with lawmakers to help resolve these complicated issues and keep the state’s economy moving forward. For example, 2007 FAR President Nancy Riley sits on the governor’s property tax reform commission, and 2005 FAR President Frank Kowalski served on the governor’s insurance reform commission.
Interests rates currently are still low, on a par with interest rates in the 1960s. And thanks to the Fed’s recent rate cut, we’re already seeing lower rates on home equity and mortgage loans, including jumbo loans. The Fed’s action effectively increases the number of homebuyers able to make a purchase, which should increase demand, and also help support home prices. Home prices continue to stabilize, inventory is plentiful and homebuyers have lots of options.
Homeownership has value: Realtors believe… and research supports that belief … that homeownership provides a variety of benefits, tangible and intangible, to the community as well as the individual homeowner.
Studies show that home equity is still the largest single source of household wealth, both for the individual homeowner and for homeowners as a group. Home value is the most important single aspect for homeowners.
Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.
Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They’re also shown to have a higher lifetime annual income.
People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact with their neighbors to gain wider influence over their neighborhoods and communities.
Homeowners join up to 41 percent more civic and/or nonprofessional organizations than renters, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.
2007 Florida Association of Realtors® (FAR) President Nancy Riley says, “Florida Realtors know buying a home is a very personal investment – an investment in a family’s future. Although research shows it is the largest single investment most families make and helps to provide security for the future, owning a home isn't just a financial investment. Ownership is about having a place to call home: a place where families build a future and become part of a community.”
Over the past five years, the average homeowner has seen an increase of 50 percent in value, according to the National Association of Realtors® (NAR). Here in Florida, the statewide median home price has shown an increase of 52.5 percent from November 2002 to November 2007, according to FAR records. NAR housing industry analysts project that prices will rise about 2 percent next year, and in coming years, average home price appreciation should return to historical averages of around 6 percent.
Florida is a great place to live and work. According to Enterprise Florida Inc., the Sunshine State has one of the nation's strongest tourism industries; it is fourth in the nation in high-tech jobs; is the third largest exporter of high-tech goods and services; and is ranked as one of the best states in the nation to be an entrepreneur.
Orlando-based economist Dr. Hank Fishkind recently said in several media reports he believes that “the worst of the so-called housing crisis has probably been mitigated by the actions of the Fed. Recovery will take a while, but it has begun.” Another economist, Dr. Lawrence Yun, chief economist with the National Association of Realtors, predicts that the Florida housing market will get stronger in 2008 and will be booming again by 2010.
And let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put us at the top of Harris Poll’s “most desirable places to live” survey.
Let’s take a look at some of the opportunities and positive indicators for the future of Florida’s real estate market.
Long-term economic and demographic trends continue to favor Florida. By 2010 it has been forecast that Florida will be the third most populated state in the country. Florida’s population is expected to increase about 75 percent by 2030. Florida demonstrates a long history of strong growth. It has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often it has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic growth such as new jobs and growing incomes. All of which is good for real estate.
People are continuing to move here. It’s estimated that 1,000 people move here every day (www.stateofflorida.com, “Florida Quick Facts”). No wonder Florida’s population has grown 13.4% since 2000, compared to only 6.4% for the rest of the country, according to census data.
Five of the top 15 cities in the Milken Institute’s 2007 “Best Performing Cities” survey, which looks at sustainable economic growth, are in Florida, including the No. 1 city, Ocala. A total of 13 Florida cities are in the top 50.
Low unemployment. Almost 120,000 jobs were created in Florida in the year between August 2006 and August 2007. Florida’s unemployment rate has hovered at or under 4% for a long time; and was 4% in August 2007, according to the latest data available from the U.S. Department of Labor. That not only puts it well below the national unemployment average, it also is the lowest unemployment rate among all ten of the most populous states.
Jobs are plentiful, and that trend will continue. A recent study by Bizjournals called “Where the Jobs Are” found that 7 of the hottest 15 job markets are in Florida.
Let’s take a look at the weather. If you think the hurricanes we experienced are going to have long-term effects on the Florida real estate market, consider this tidbit from Fortune Magazine. It recently reported, “Economists and geographers who have studied how natural disasters affect real estate values have generally found there to be no lasting impact.” Example #1: When Hurricane Hugo hit Charleston, S. C., home values were actually higher one year later. Example #2: That same year, 1989, a huge earthquake made big news in San Francisco, and the same thing happened—house prices went up.
Grant Thrall, a professor of what’s called Economic Geography, explains this phenomenon this way—residents move away and home prices fall only when natural disasters start becoming regular occurrences in an area, not when they happen periodically. And while the hurricane seasons of 2004 and 2005 may still be fresh in our minds, the fact is, historically it was a fluke. Eight storms hit the Florida mainland in those two years. But if you look back at the 50 years prior, only six Category 3 or higher storms hit the Florida mainland in half a century.
Gov. Charlie Crist, state lawmakers and business groups are committed to finding real solutions to the escalating costs and shortage of property insurance in Florida, as well as much-needed property tax reform. Florida Realtors will continue working closely with lawmakers to help resolve these complicated issues and keep the state’s economy moving forward. For example, 2007 FAR President Nancy Riley sits on the governor’s property tax reform commission, and 2005 FAR President Frank Kowalski served on the governor’s insurance reform commission.
Interests rates currently are still low, on a par with interest rates in the 1960s. And thanks to the Fed’s recent rate cut, we’re already seeing lower rates on home equity and mortgage loans, including jumbo loans. The Fed’s action effectively increases the number of homebuyers able to make a purchase, which should increase demand, and also help support home prices. Home prices continue to stabilize, inventory is plentiful and homebuyers have lots of options.
Homeownership has value: Realtors believe… and research supports that belief … that homeownership provides a variety of benefits, tangible and intangible, to the community as well as the individual homeowner.
Studies show that home equity is still the largest single source of household wealth, both for the individual homeowner and for homeowners as a group. Home value is the most important single aspect for homeowners.
Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.
Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They’re also shown to have a higher lifetime annual income.
People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact with their neighbors to gain wider influence over their neighborhoods and communities.
Homeowners join up to 41 percent more civic and/or nonprofessional organizations than renters, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.
2007 Florida Association of Realtors® (FAR) President Nancy Riley says, “Florida Realtors know buying a home is a very personal investment – an investment in a family’s future. Although research shows it is the largest single investment most families make and helps to provide security for the future, owning a home isn't just a financial investment. Ownership is about having a place to call home: a place where families build a future and become part of a community.”
Over the past five years, the average homeowner has seen an increase of 50 percent in value, according to the National Association of Realtors® (NAR). Here in Florida, the statewide median home price has shown an increase of 52.5 percent from November 2002 to November 2007, according to FAR records. NAR housing industry analysts project that prices will rise about 2 percent next year, and in coming years, average home price appreciation should return to historical averages of around 6 percent.
Florida is a great place to live and work. According to Enterprise Florida Inc., the Sunshine State has one of the nation's strongest tourism industries; it is fourth in the nation in high-tech jobs; is the third largest exporter of high-tech goods and services; and is ranked as one of the best states in the nation to be an entrepreneur.
Orlando-based economist Dr. Hank Fishkind recently said in several media reports he believes that “the worst of the so-called housing crisis has probably been mitigated by the actions of the Fed. Recovery will take a while, but it has begun.” Another economist, Dr. Lawrence Yun, chief economist with the National Association of Realtors, predicts that the Florida housing market will get stronger in 2008 and will be booming again by 2010.
And let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put us at the top of Harris Poll’s “most desirable places to live” survey.
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