Davidson Realty, Inc.

North Florida Real Estate Trends for January 2012

February 27, 2012

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Posted by in Uncategorized

“If it is important to you, you will find a way. If not, you’ll find an excuse.” Unknown

This quote really hit home for me, I hope you enjoy.

The Northeast Florida Association of Realtors market stats for January revealed some interesting information. First I noticed the large drop in closings from 1,432 closings in December, 2011 to only 977 closings in January 2012. I looked back and found similar trends every January. Next I compared January 2012 to January 2011 and saw a 6% decline in closings. I looked a little closer to discover that in January 2011 there were 612 lender-mediated closings and this year there were only 488 for a 20% decline. The traditional closings increased by almost 14% from 430 in January 2011 to 489 in January 2012. So overall closings are down but non distressed closings (traditional) are up.

It has been reported that the banks are going to increase foreclosing properties. How they market these foreclosures and whether this impacts short sale negotiations may be a major factor in 2012. We have seen the banks get much tougher lately with negotiations on short sales. Read more

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Jacksonville FL Real Estate Statistics in April 2011

May 31, 2011

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Posted by in Uncategorized

“Genius is the ability to reduce the complicated to the simple.”C. W. Ceram

The most successful people I know are able to simplify complicated issues. When I reviewed the Northeast Florida Association of Realtors market statistics this month I struggled with how to simplify what seemed like some very conflicting information.  As with many issues dealt with in today’s business environment, the analytical complexity was a result of yet another “helpful” government program. Any statistical analysis comparing April, 2010 vs April, 2011 must factor in the 2009 homebuyer tax credit program. As you may recall, homebuyers were initially required to be under a contract by November 30, 2009 which was then extended to April 30, 2010. As a result, 2010 results were directly impacted by this program.

First let’s look at activity. Pending sales and closings for April look very good compared to recent months; however, when you compare them to April, 2010 pending sales are down 13.2% and closings are down 8.8%. To give a little perspective, closings are up 2% year to date over 2010.

In April, 51.1% of closings were distressed properties. That number is down from the previous three months when the percentage was closer to 60%.

Now we will look at pricing. The median sales price for April is down 8.1% when compared to last April; however the average sales price is up 1.7%. Due to the 2009 homebuyer tax credit program many of the closings last April were first time homebuyers. This year we are seeing more mid and higher priced properties selling. We will not see any strong improvement in prices until the distressed properties situation improves. Read more

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Jacksonville FL Real Estate Trends in January 2011

February 23, 2011

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Posted by in Uncategorized

 “The path to our destination is not always a straight one. We go down
 the wrong road, we get lost, we turn back. Maybe it doesn’t matter
 which road we embark on. Maybe what matters is that we embark.”
        — Barbara Hall

We have embarked on a new year and January is already proving correct many predictions of ups and downs in the real estate market during 2011. See the table below for the latest Northeast Florida Association of Realtors statistics.

 

Jan 2009

Jan 2010

Jan 2011
Pending Sales

942

1,148

1,396
Closed Sales

701

921

993
Days on Market Until Sale

109

102

120
Median Sales Price

$155,000

$132,700

$120,750
Average Sales Price

$201,832

$164,825

$153,361
% of Original List Price Received

86.3%

88.6%

86.1%
Inventory of Homes for Sale

16,690

15,443

13,198
Months Supply of Inventory

15.9

12.3

9.4

As you can see, pending sales, closed sales, Inventory of homes for sale and months supply of inventory are all showing positive trends. There are more sales each year and less inventory.

The median and average sales prices are declining. One major reason for this decline is that a staggering 59% of all closings in January were short sales or foreclosures.

If you take a 12-month average of the average sales price for the most current year, you will see it comes to $169,465 which when compared to the previous year of $179,057 shows a 5.4% decline in pricing. This method helps to smooth out the bumps in pricing each month.

If you know of anyone that would like to buy, sell, or rent a home, please give me a call. I would love to take great care of any of your referrals.

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Thinking About Real Estate Investing? Avoid These Top 3 Mistakes

December 8, 2010

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Posted by in Uncategorized

We’re seeing a lot of real estate investment activity in the St. Augustine area, and now’s a great time to take advantage of excellent deals and opportunities. But here’s some advice from someone who’s been active in the St. Augustine and Jacksonville FL real estate market for more than 20 years – the top 3 mistakes our real estate professionals see investors make:

1. They don’t understand the current market trends in a specific neighborhood.  I speak to many investors that know a lot about our general market area; however, every neighborhood has behaved a little differently during this market adjustment. You need to be ahead of everyone else in seeing when the prices are declining, becoming more stable and beginning to improve. An investor may avoid a neighborhood because there were so many distressed properties when the reality is that neighborhood has already adjusted and the inventory and prices have stabilized. It is very hard to know what is about to happen in a neighborhood if you don’t spend a lot of time actually seeing the inventory.

2. They don’t know details that aren’t public record. Many investors are interested in condos now because the prices have adjusted even more than single family homes in the Jacksonville area. While condos can be a great investment, your success is more dependent on the other owners and the Association. If you don’t know the rental policies, the potential lawsuits facing the Developer or Association or other issues currently brewing in the Community, your investment may not be as successful. Realtors that handle sales in that Community every day may give you the insights you need to make the best decision. Read more

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SHORT SALE SUCCESS: A TRUE STORY

September 27, 2010

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Posted by in Short Sales

A homeowner facing a huge increase in her mortgage payment.

Short sold a home in World Golf Village.

Never missed a mortgage payment.

Process took about 30 days.

Seller bought a new, more affordable home just 6 months later.

No tall tale here. This is a true story of how a well-executed short sale can have a happy ending. Della Myers, a Real Estate Agent herself, saw the writing on the wall. Her 2004 purchase of a World Golf Village home was at the height of the market. The lender assured her that she could simply refinance (buoyed by all the equity she would gain from the robust market) before her low monthly “teaser” rate adjusted dramatically higher.

But the market changed. Della tried to get out in front of things. She knew her rate adjustment was coming and she would not be able to afford it. She put her home on the market but to no avail. She lowered the price and re-listed it. Again no bites. She couldn’t refinance because her home’s value was plummeting and would eventually end up appraised for about 50% less than she paid. Della knew a Short Sale, when the lender/bank agrees to take less for the home than the original loan value in order to avoid foreclosure, was her only hope. Read more

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