Davidson Realty, Inc.

Jacksonville Market Trends for April 2014: All-cash Sales up While Distressed Sales and Investors Decline

May 21, 2014

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Posted by in News, Northeast Florida Market Trends

“The more you praise and celebrate your life, the more there is in life to celebrate” Oprah Winfrey

May has been full of celebration. Davidson Development celebrated our 25th anniversary May 1, 2014 and Jim and I celebrated our 34th wedding anniversary on May 9th. We have been blessed.

You may have seen the recent headlines “All-cash sales up while distressed sales and investors decline”. Lawrence Yun, the National Association of Realtors chief economist offered a terrific explanation. “Florida is the most popular state for international buyers, who generally pay cash, as well as vacation-home buyers who frequently pay cash. In addition, downsizing retirees are known to pay cash from the proceeds of their homes in the north.”

It is a very interesting dynamic because more than half the homes sold in the first quarter in Florida were cash sales. I had not really focused on how many Baby Boomers have decades of accumulated equity and pay cash when they downsize.

RealtyTrac reports that in Jacksonville, the institutional investors share of purchases were down to 13.5% in the first quarter compared to 18% a year ago. We have seen a large drop in investor purchases since the beginning of the year.

The Northeast Florida Association of Realtors market stats for April show continued recovery in the housing market. Pending sales are up 14% over last April and 10% year to date. There were 2,439 pending sales or contracts written in April. To put this in context, there were only 2 months in 2005 during the peak of the market when more contracts were written.

There were 1,901 closed transactions in April which is down 4% from last April; however closings are up 3% year to date over the same period last year. The lender mediated closings were down 8% from last April and the traditional closings were down 2%.

The median sales price of $154,990 is up 2% over last April and almost 3% year to date. The lender-mediated sales price is $84,505 which is down 6% from last April compared to the traditional median sales price of $205,000 which is up 8%.

The average sales price of $201,911 is up 2% over last April and up 4% year to date.

The inventory of homes for sale is 9,656 which is down 1% from last April. The inventory that is lender-mediated or distressed is 25% of the total compared to 35% last April. It is very positive to see distressed properties declining this significantly.

Each month this year has been a little better than the month before. As the economy and employment improves, the real estate market will continue to get stronger. I hope you take some time to celebrate. Please call me if I can help you with any real estate needs or questions at (904) 940-5000.

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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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