Davidson Realty, Inc.

Jacksonville Real Estate Trends in May – Find Out What The Experts Are Saying

June 17, 2016

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Posted by in New Home Construction, News

“If we ever forget that we are One Nation Under God, then we will be a nation gone under.” Ronald Reagan

I couldn’t resist a little Ronald Reagan with the 4th of July coming up so soon. I wish you a wonderful holiday.

The May numbers from the Northeast Florida Association of Realtors continue to indicate a healthy real estate market in our area. The pending sales of 2,765 are up 6.5% over the previous May and 5.5% year to date. There were 2,393 closings in May which is down 1% from last May, but year to date closings are up 5.1%.

At a recent National Association of Real Estate Editors convention, housing economists from around the country offered forecasts. From a national perspective they are seeing some conflicting signs. On the optimistic side, they see home equity rising for consumers, increased job opportunities and credit issues from the recession being repaired which has bolstered pent up demand and increased pending sales and closings.

On the negative side, they see inventory shortages and prices too high for first time homebuyers that are struggling with student loan debt and the ability to save for a down payment.

Lawrence Yun, chief economist for NAR, predicts existing home price increases to slow from 6.8% in 2015 to 4.5% in 2016 and 3.2% in 2017. There are similar predictions for new home price growth from 4.8% in 2015 to 2.7% in 2016 and 2.3% in 2017.

Locally in May we saw the median sales price rise 10.3% from last May to $193,000. This is a large increase from the $180,000 median price in April. The year to date increase is 8.6%. It isn’t unusual to have large monthly fluctuations, but we will have to wait and see what happens in the next few months to see if this trend continues.

There is a big difference in the median sales price of previously owned homes of $159,650 and new construction of $272,990. These numbers are based on a rolling 12-month median. I keep reading articles that builders need to bring in lower priced homes, but in talking with local developers and builders, that is very difficult because of the increased requirements for infrastructure, fees and regulations.

The average sales price increased 9% to $234,511. The year to date increase is 6.6%.

Our local Northeast Florida real estate market looks very strong. Pending sales and closings are up, prices have continued to rise and inventory is down to a 3.9 months supply of homes available. Our inventory is below the balanced market of 5 to 6 months of inventory, so in most areas and in price ranges under $500,000, it is a seller’s market.

Please let me know if I can assist you with any real estate needs. It is still a great time to buy investment properties with rents high and interest rates low.

Have a great Independence Day holiday! Our family will be celebrating 8 years since Jim’s liver transplant later this month. God is good.

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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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