Davidson Realty, Inc.

Jacksonville Real Estate Trends in May – Short Sales Out, Foreclosures in…How Crazy is That?!

June 20, 2014

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Posted by in News, Northeast Florida Market Trends

“A truly rich man is one whose children run into his arms when his hands are empty” – Unknown

I picked this quote to honor all the great Fathers out there. I hope your Father’s Day was the best ever. The real estate market has improved every month in 2014.The numbers below are from the Northeast Florida Association of Realtors market stats report.

January

February

March

April

May
Pending Sales

1,840

1,909

2,193

2,347

2,467
Closed Sales

1,505

1,649

1,876

1,975

2,044

The median sales price and the average sales price are up 3.4% and 3.6% respectively year to date.

The inventory of homes for sale is up slightly over last May by 1.1%. As we have been seeing recently, the lender-mediated homes for sale is down 32% and the traditional inventory is up 19%. Of the homes for sale at the end of May, 23.1% are lender-mediated compared to 34.4% last May. This is a very good trend.

We are seeing a very interesting trend now with distressed or lender-mediated properties. The lenders on Fannie Mae and Freddie Mac loans are pushing the properties into foreclosure rather than approving short sales for some reason.

As a result, we list the properties as short sales and get an offer on the property. We submit the contract to the lender for approval as a short sale. The lenders are replying with counter offers that are above the market value of the properties and the buyers walk away.

I looked at the Florida Realtors monthly distressed market report for April 2014 for single family homes in the Jacksonville MSA and saw that traditional closings were up 10% over the previous April, foreclosure closed sales were up 38% and short sale closings were down 55.5%. I looked at the statewide numbers and saw the same trend.

It is not logical that the lenders would prefer to foreclose a property rather than work through a short sale. I spoke with David Heekin, Heekin Law, and he confirmed they are seeing the same trend. David is one of the most knowledgeable people in town working with short sales. I can’t offer an explanation, but if you are selling or trying to purchase a property through the short sale process with a Fannie or Freddie loan, you may be wasting your time.

I believe we will continue to see strong sales throughout the summer. The days a property is on the market before an offer is accepted is down 5.6% from 89 days last May to 84 days.

Please let me know if we can assist you in any way with your real estate needs – (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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