Davidson Realty, Inc.

Jacksonville’s Real Estate Trends in September – Experts in the Industry Forecast Continued New Construction Growth

October 23, 2015

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Posted by in News, Northeast Florida Market Trends

“Success is not final, failure is not fatal: it is the courage to continue that counts.” Winston Churchill

This quote seems appropriate with the baseball playoffs in full swing, college football rivalries broadcast weekly and of course the trials and tribulations of the Jaguars!!!

This quote certainly applies to the real estate industry.

Over the last thirty days there have been numerous articles by the pundits in the real estate industry forecasting what to expect industry wide over the next three years.

• Kent Hoover – The Business Journal found: The Housing Market Index, which is a survey of builder confidence, jumped three points this month to 64, which is the highest level in 10 years.

• Kris Hudson and Jeffrey Sparshott – The Wall Street Journal found: “New-home sales, which historically account for about 10% of all home sales, are up 21% in the first eight months of the year from the year earlier period, while the ranks of home construction workers are up only 4.2%” The article talks about the labor shortage of construction workers causing delays and cost increases. “The residential industry has regained less than a third of the roughly 1.5 million jobs lost from 2006 to 2011.”

• One last article quotes Urban Land Institute (ULI), which predicts housing markets to expand steadily through 2017. They predict single-family housing starts to increase to 745,000 in 2015; 842,000 in 2016; and 900,000 in 2017. However, William Maher, ULI Leader said “The U. S. economy and real estate markets are in much better shape than most other countries, but global economies and capital markets are increasingly interrelated.”

It appears there is consensus among the pundits that new home construction will continue to improve; however, like other manufacturing type industries skilled labor shortages, price increases and the global economy are all concerns to be watched.

As always it is important to point out that the local trends in real estate and those of the overall U.S. market don’t always agree. Our local market continues to shine in all industry performance categories.

The Northeast Florida Association of Realtors Market Stats for September show signs of a healthy housing market. The closed sales are up 13% month over month and year to date. Pending sales are up 15% month over month and 19% year to date. The days on the market until sale dropped from 83 days last September to 76 days in September 2015.

The median sales price is up 8% year to date and the average sales price is up 5%. The distressed sales and inventory continue to decline. The inventory of homes for sale is down 14% and the months supply of inventory available is 4.3 months. Five to six months is considered a balanced market.

I continue to predict a strong finish for our real estate market this year.

We should be in our new beach office by early December. Please save the date of January 21, 2016 for our grand opening event.

As always, if there is anything real estate related we can help you with, please give us a call 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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