North Florida Real Estate is Heating Up

Posted by Howard Flaschen on Thursday, September 29th, 2011 at 4:08pm.

North Florida Real Estate is Heating Up

Jacksonville, FL - You do not have to believe me. Shoot, if you need some negative news about the National Housing market? Just look up Diana Olick on CNBC for your fair share of melancholly. Want to know what's happening locally? Ask you friendly Realtor (or me if you dont have one). Ive been banging the drum that I was feeling the market starting to firm up and boy is it. Inventory is down around a third!!

Are more homes going to hit the market? You betcha but with rates this low and people still dying to relocate to Florida and not Miami the Top Right is starting to reinflate. Just today one of my buyer's had whittled it down to 4 homes that they're considering making an offer on but thats been forced down to 3 as someone else has snagged their favorite. Another one of my customer's, the Pikes from the Northeast, finally got under contract on their 3rd attempt at a condo in Ponte Vedra.

Its becoming a common refrain I hear when customer's ask me about the market and I tell them what I'm seeing. "What?! Are you serious?" Yes I am. Are prices going to remain here? I dont know. Are they going to drop 50%? I doubt it. Will I be able to sell my home in 5 years for more then I paid for it? I hope so but all of these things dont change the fact that...

The good homes, that people want, in areas that they want to live, are being snagged up at prices near the bottom and interest rates historically low and in 10 years, in my opinion, these homebuyers will be thankful that they struck while there will be a group of people who said.... "hmmm, If only I'd have bought when prices were low and interest rates were so good".

Dont take my word for it:

Closed sales were up 1.5 percent year-over-year, coming in at 1,441 sales for the month. Pending sales popped in August, jumping 24.4 percent year-over-year to reach 1,744.

Inventory in August was noteworthy, dropping 32.2 percent from a year ago to arrive at 11,167 properties for sale as opposed to last August's 16,464. The number of months supply of homes for sale also showed exceptional improvement year-over-year, dropping from 11.8 months last August to just 7.9 months this August; a 33.1 percent drop. A market is considered balanced when there is roughly a five- to six-month supply of properties, indicating that northeast Florida is on the cusp of that normalcy.

New listings were also markedly down, dropping 20.7 percent from 2,924 in August 2010 to 2,319 this August.

Howard Flaschen



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