Davidson Realty, Inc.

How is the Real Estate Market?

September 18, 2009

 | 
Posted by in Distressed Properties, Foreclosures, News, Short Sales

Sherry_DavidsonHow is the real estate market? I hear this question a lot. My answer lately has been that activity is up dramatically, but prices are not. Here are three trends that I like to watch.

1. Inventory levels
The number of active listings in the Northeast Florida Multiple Listing Service continues to decline. There are 14,945 properties for sale in August 2009 compared to 18,326 in August 2008. There are 18% less properties for sale. The months supply of inventory dropped from 17.1 months in August 2008 to 12.6 months in August 2009. Six months of inventory is when the market is most balanced.

2. Pending Sales
The pending sales in August 2009 are up 48% over August 2008. We have seen a large increase in the number of buyers looking for a home and the contracts that are being written.

3. Prices
The median sales price is down 17% from last year and 25% from two years ago. The average sales price is down 20% from last year and 31% from 2 years ago. The number of foreclosures and short sales in our area have caused prices to remain low. The real question most people are interested in is “when will prices begin to increase?” My crystal ball is broken but until we clear out the distressed properties, the prices will remain low.

The housing affordability index is at an all time high. It is a great time to buy a home with interest rates low, prices low and the first time homebuyer tax credit available.

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About the Author
Sherry Davidson
President of Davidson Realty

Since launching Davidson Realty in 1989, Sherry Davidson has built the firm to include nearly 60 agents and exceed $100 million in annual sales. She is known throughout the First Coast as an authority on all things residential real estate, having served on the Board of Directors for Northeast Florida Association of Realtors, Florida Realtors® (a division of the National Association of Realtors), and Builders Care (charitable arm of Northeast Florida Builders Association).

Thanks to Sherry’s leadership, Davidson Realty has been recognized as one of the state’s Best Companies to Work For (Florida Trend Magazine), as well as one of the region's Best Places to Work and 50 Fastest Growing Companies (Jacksonville Business Journal). Get to know Davidson Realty’s talented team of agents by clicking here or call us at (904) 940-5000.

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