Davidson Realty, Inc.

Jacksonville, FL Real Estate Trends in June!

July 28, 2011

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Posted by in Northeast Florida Market Trends

“Progress always involves risks. You can’t steal second base and keep your foot on first.” -Frederick B. Wilcox

I love baseball especially this time of year. I chose this quote because I am going to take a risk and predict that the northeast Florida real estate market will continue to improve. In reviewing the Northeast Florida Association of Realtors market stats, I see monthly improvement in every area. Also, my office had the best month for closings since June 2008.

Let’s begin with prices. The average price in June is $181,700 which is 17% higher than January and has increased every month. The average sales price is 7% higher than last June.

The median price in June is $135,000 and has increased every month since February showing an increase of 12%. The median price is down 4% from last June.

June 2011 pending sales are up 34% over June 2010 and we are up 7% year-to-date over last year.

Closings in June 2011 are down 15% from June 2010. Closings last June were higher as a result of the Homebuyer credit program. There were 1,529 closings in June 2011 which is the most closings in any month since June 2010.

The inventory of homes for sale continues to decline from 16,546 properties in June 2010 to 11,776 properties in June 2011 for a 29% reduction. The months supply of inventory dropped from 11.8 months in June 2010 to 8.4 months in June 2011 for a 29% decline. This reduction in inventory in very desirable neighborhoods should result in small price increases and new construction.

The lender-mediated closings have dropped from 60% of closings in February to 44% of closings in June.  I think there will be plenty of distressed properties sold in the coming months as the banks get the foreclosure processing issues behind them.

I don’t expect every month to show positive increases as we will still see some ups and downs. We also shouldn’t expect pricing to have more than a moderate rebound in the near future and our sales activity will also not change dramatically. However, the trends in each category are very positive over the last several months and I believe we will see continued improvement in the real estate market in our area.

Investors appear to be coming back in the market with the rental market being very strong. Davidson Property Management received 8 rental applications last weekend for 4  properties. If you are considering an investment in real estate, rental properties may be the product to consider and I would love to help. Maybe it is time to take a risk.

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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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