Real Estate in Northeast Florida and Around the World

The lastest data has been released from the Northeast Florida Association of Realtors (NEFAR), and the results are interesting.  Sales volume has increased, primarily in the sale of distressed property - short sales and forecloures, and prices have have dropped.  The promising news is that inventory levels continue to decrease - a necessary step in market normalization.  But a deeper look into the data, including what is happening at specific areas and price ranges is warranted.  One should not make assumptions based on generalities - definitely not on a national level, and certainly this applies to a region as well.  The national media has certainly discussed the "Florida real estate market", but if you assume that Northeast Florida's market is the same as Tampa, Orlando, Daytona or Miami, you will be very mistaken and it could be a costly assumption.

Some interesting metrics include:

• New listings have fallen over 18% compared to July 2008, from 3,596 new listings to 2,942 new listings in July 2010
• The median sales prices has dropped 24.2%, from $182,000 in July 2008 to $138,000 in July 2010
• Pending sales - properties with ratified contracts pending closing - have increased 46% from 1129 in July 2008, to 1648 in July 2010
• Closed sales of traditional sales - those with no lender mediation involved, dropped 28.4%, from 931 in July 2009 to 667 in July 2010
• Closed sales of lender-mediated sales - foreclosures and short sales - increased from 501 to 581 comparing July 2009 to July 2010
• The median sales price of traditional sales dropped from $179,945 to $174,000, comparing July 2009 to July 2010, only a 3.3% reduction
• The median sales price of lender-mediated sales dropped from $112,000 in July 2009 to $95,000 in July 2010, a 15.2% reduction

So what does this tell us?  That we have 2 markets in Northeast Florida - a very distinctive market of distressed sales, and those where there is no lender mediation required.  In these two markets, a buyer and seller will experience very different opportunities and challenges, and navigating the currents takes a skilled and educated real estate professional to help you make the best decisions. 

I am continually reviewing data such as this as well as new, pending and sold listings throughout the region to stay abreast of the changing tides, so that my customers can make decisions based on facts, not conjecture, or from a "news" report from someone who doesn't live or work in Northeast Florida, and certainly doesn't have the real estate expertise to understand the different markets in this corner of Florida.

You can find more information on Northeast Florida market conditions by clicking on the menu option to the left "Market Data", or by sending me an email with your questions to MissiHowell@MissiHowell.com, or leave me a comment below.