NEFAR Market Trends for May 2010

More than ever, folks have a lot of questions for those of us in the real estate industry. The fact is real estate values impact most people’s lives. I would like to share some statistics about sales, pricing and inventory and my thoughts on the local market.

The pending sales for May 2010 in the Northeast Florida Association of Realtors market stats were down about 25% from March and April but 14% above May 2009 pending sales. Many experts were predicting May sales to decline dramatically because homebuyers can no longer take advantage of the tax credits that were available for contracts signed through April 30, 2010. Our office did not see a decline in May sales.

The median and average sales prices were both up slightly in May over March and April. The median sales price for Jacksonville FL real estate was $139,900 and the average sales price was $175,785. These prices are below May 2009 prices but that should not be a surprise. I look for trends from the previous months. What happened last year is over and I look for current trends.

An encouraging trend for Jacksonville Realtors is the days a property is on the market until sale is down to 100 days in May 2010 compared to 104 days in March and 103 days in April.

The inventory of homes available continues to decline. The month’s supply of inventory was 11.5 months available in March and 10.4 months available in May. A 5 to 6 month supply of inventory is considered a balanced market.

We will know a lot more about the Jacksonville and St. Augustine real estate recovery over the next few months when we see if the market continues to slowly improve without the benefit of the Government incentive.