Davidson Realty, Inc.

May Real Estate Trends in Jacksonville – Job Growth is Fueling Demand for Homes!

June 23, 2015

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Posted by in News, Northeast Florida Market Trends

We need 4 hugs a day for survival. We need 8 hugs a day for maintenance. We need 12 hugs a day for growth. – Virginia Satir

Thanks to you that have given and received hugs, we survived, maintained and are now growing. I am pleased to announce that Davidson Realty and Davidson Property Management are in the process of locating a new office near the Jacksonville Beach area to serve our customers at the beach and in the San Pablo, Hodges and Kernan areas.

We have always been and will continue to be selective in the agents that represent our company. Your friendship and support has contributed to our growth in the past and we would welcome and appreciate any referrals of agents for our new office. We have a new commission structure designed for experienced agents that we think they will find very appealing.

Another reason for our growth is the continued strong outlook for the residential real estate market. According to Jonathan Smoke, the Realtor.com chief economist, job growth is fueling the demand for homes and with the current level of growth, total home sales this year could near 6 million, which is near the peak seen in 2006.

The Northeast Florida Association of Realtors market stats for May show a very strong increase in pending sales this year. Year to date pending sales are 12,188, which is a 20% increase over the 10,180 pending sales for the same period last year. There were 2,739 pending sales for the month which is 24% more than last year.

The year to date closings are only up 8%; however, the strong pending sales for the last 3 months should equate to more closings this summer. The share of closings for May that were distressed properties was 27%, which is down from 37% last May and around 60% in the worst part of the recession.

The median sales price of $175,000 is 10% higher than last May’s $158,500. The average sales price of $214,890 is 6% higher than last May’s $202,400.

Inventory continues to decline to 9,714 properties available down 14% from the 11,338, available last May. There is 4.5 months supply of inventory which is down 25% from 6.0 months last May. I keep reading articles about the scarcity of inventory and bidding wars. I personally think the local articles are a little dramatic. Good listings are getting contracts quickly and the market seems balanced right now.

To recap, pending sales are very strong and closings should follow. Prices are rising but at a sustainable rate. Inventory is relatively low, but there are properties available for the prepared buyer that is pre-approved for a mortgage, educated on the market and ready to make an offer when they find the right property. The market is also good for sellers willing to price their homes properly and put them in good condition.

Baseball season is in full swing and we are celebrating Jim’s liver transplant 7th birthday this month so I feel very blessed. I wish you a very happy Independence Day and relaxing summer. Please give us a call at (904) 940-5000 for any of your real estate needs!

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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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