Davidson Realty, Inc.

Jacksonville Real Estate Trends in September – 5 Reasons it’s Time to Buy an Investment Property!

October 26, 2016

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Posted by in News, Northeast Florida Market Trends

Every morning in Africa a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death. It doesn’t matter whether you are a lion or a gazelle. When the sun comes up, you better start running. -African proverb

I want to share a few trends from the Urban Land Institute (ULI) report, Demographic Strategies for Real Estate looking at the real estate industry over the next 10 years.
1. By 2025, the number of women in the workforce will rise to 78 million, 8 million above the level in 2015.
2. Immigration will account for more than half the U. S. population growth by 2025 and many immigrants are highly educated middle and upper-class families with substantial purchasing power.
3. By 2025, 66 million Americans will be over age 65 – 38 percent more than in 2015.
4. Young adults are expected to create 14 million households by 2025.
5. Housing rental rates will surge over the long term because well over half of the 12.5 million net new households created over the next decade will rent, including those who have never owned, and those making the switch from owning to renting as they age.

Assuming the predictions about housing formations and the number of people renting are even close, we will need many new houses and owning investment properties could be very lucrative.

A look at the September market stats from the Northeast Florida Association of Realtors show that for the three quarters of the year we have slightly more sales and closings than the previous year, increased sales prices and a lower amount of inventory for sale. All positive signs for our local northeast Florida market.

Pending sales are up 2% year to date over the previous year. We have averaged 2,334 sales per month over the last 12 months and September had 2,272 sales, an increase of 5% over last September.

Closed sales are up 4% year to date over the previous year. We have averaged 2,305 closings per month over the last 12 months and September had 2,261 closings, a decrease of 4% from last September.

The median sales price of $190,000 is up 8.6% from last September and 8.8% year to date. The average sales price of $232,722 is up 11.9% from last September and 7.8% year to date.

The inventory of homes for sale dropped 15.7% from last September to 9,077 homes available. At the current absorption rates, this is 3.9 months supply of inventory. A balanced market is 5 to 6 months of inventory. We continue to see a decline in the distressed homes for sale. Only 8.2% of the available homes are lender-mediated compared to 18.4% last September.

Enjoy the Jaguars winning streak, the great college football matchups and the final games of the baseball season. If we can help you in any way with any real estate needs including buying a great investment property, please let us know. We welcome any of your referrals. (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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