Jacksonville Real Estate Trends in July – Jacksonville Ranked #1 in Nation for Investors on a Budget

August 23, 2016


“Winners focus on winning. Losers focus on winners.” This great quote was over a picture of Michael Phelps from the Rio Olympics.

The national real estate market is positive. Jonathan Smoke, realtor.com chief economist says “these factors have made this summer one of the best in a decade. The highest consumer confidence for a July since 2007, the highest nominal home prices for a July on record, and the lowest July mortgage rates on record.”

The state of Florida ranked well in a study by realtor.com and HomeUnion. They ranked top cities for investors on a budget by looking at single-family homes that cost $232,500 or under as well as considering other factors in the study. The top 3 cities in the nation were in Florida. Number 1 – Jacksonville, FL, number 2 – Tampa, FL, and number 3 – Orlando, FL.

The July market stats produced by the Northeast Florida Association of Realtors continue to provide positive news for our local market. The days on market until sale is down from 77 days last July to 70 days for a 9% decrease in time on the market.

The pending sales of 2,446 are down 3% from last July, but are up 3% year to date.

The closed sales of 2,410 are down 11% from last July, but closings are up 3% year to date. The lender-mediated closings are down 53% and traditional closings are up 4%. This is very positive news for our market.

The available inventory of 9,310 homes is down 15% from last July. The lender-mediated inventory is down from 2,133 homes last July to 831 homes this July for a 61% decrease. We have made huge progress in clearing out the distressed properties in our area.

There is a 4.0 months supply of inventory available. As I say in each letter recently, there is a shortage of inventory under $300,000 and the market is balanced in the $300,000 to $400,000 range. Between $500,000 and $1 million there is a 10.7 months supply and over $1 million there is 22.6 months supply. A 5 to 6 months supply is considered a balanced market. I have spoken with several other Realtors in the area and there is agreement that the higher end buyers are not very active in our market right now.

The median sales price of $196,000 is up 8.9% over last July and 8.2% year to date. The average sales price of $242,362 is up 8.5% over last July and 6.5% year to date.

The days on market is down, pending sales and closings are up year to date, inventory continues to decline, distressed properties are being absorbed and prices continue to rise. All positive trends for our local northeast Florida real estate market.

I just came from a great real estate event in San Diego where we celebrated Jim’s birthday. In a section on investing, Brian Buffini pointed out that you should invest for cash flow or appreciation. You can’t always have both. If you would like to consider investing in real estate, we can help. Please let me know if I can assist you with anything real estate. (904) 940-5000

I hope you are enjoying the Olympics and getting ready for football season. It is a great time of the year.

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