Davidson Realty, Inc.

Northeast Florida Real Estate Trends in July

August 30, 2010

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Posted by in Northeast Florida Market Trends

This week’s headlines on the historical drop in national home sales certainly didn’t help in creating market confidence.  Closings in the Northeast Florida Association of Realtors (NEFAR) market area in July are down almost 30% from the number of closings in June. I really believe the tax credit is part of the reason for this drop.  It is encouraging to see that pending sales or new contracts being written in Northeast Florida have increased over June.

Out of curiosity I did some research on high-end transactions in the Nease High School attendance zone which includes communities such as Nocatee, Palencia, World Golf Village and everything in between. Since January 2010 there have only been 25 single family homes closed over $500,000. My statistics come from the Northeast Florida Multiple Listing Service and do not include any home listed only in the St. Augustine MLS. Sales of high-end residential homes are still hampered by the lack of consumer confidence and the mortgage lending market.

Here are a couple facts about St. Augustine and  Jacksonville FL real estate in July:

• While the median sales price in the NEFAR area dropped in July, the average sales price in the NEFAR  area showed a slight increase. Unfortunately our primary markets 32092 (World Golf Village) and 32095 (Palencia) showed a decrease in the average sales price. Home price improvement will only be generated by reduced housing inventories and increased job production in the private sector.
• The number of homes available for sale continues to drop. When looking at “for sale” inventories, keep in mind there is a need to segregate listings based on sales price viability. There are many sellers listing their homes high above true market value. These properties are “for sale” but not saleable.
• The inventory of available homes in the World Golf Village is less than half of what it was 2 years ago. In August 2008 there were 258 active listings and in July 2010 there were only 122 active listings.

The government loan modification programs are a huge failure and people are finding short sales and foreclosures to be the only solution available to them. The distressed properties will not be going away any time soon.

Even though I can’t give you positive facts about our market this month, I do have positive news about Davidson Realty! We have doubled the number of agents this year and we are constantly looking for more good agents to join our Company. I would greatly appreciate your referral of any agent looking for a new opportunity or anyone you know that is considering a real estate career.

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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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