Real Estate in Northeast Florida and Around the World

Based on The Northeast Florida Association of Realtors recent reports, the upward pace of real estate activity continues.  The article published by NEFAR stated Northeast Florida's real estate market showed some signs of positive movement during November. The 1,394 pending sales in the region were a 22.2 percent increase over last November. Months supply of inventory - which should ideally fall between five and six months - also took a step in the right direction and was down to 9.6 months; a significant 24.6 percent decrease from last year.

Closed sales of 1,001 were a 24.6 percent drop from last year's 1,327. With a temporary stoppage of foreclosure sales and short sales by many large lenders during the past couple of months, this is not necessarily a surprise. 

A positive trend seems to be emerging in closed sales, however. While lender-mediated prices continue to drop, the median price of traditional sales has rallied every month since August, showing increases over their respective month in 2009. November's median price for traditional sales jumped 8.9 percent over last year's $160,000 to reach $174,250. Overall, median prices dropped 3.2 percent as a result of the 21.7 percent price decrease in lender-mediated sales.

NEFAR President Carol Hill says, "There were 514 traditional sales during November and 487 lender-mediated sales. We're encouraged that the median price of traditional home sales appears to be stabilizing and look forward to the day when the number of lender-mediated sales is greatly diminished."

Based on my 2010 business, and especially what I have seen in the last quarter of this year, 2011 appears to be approaching with a good head of steam.  Not that I anticipate a spike or a boom in real estate, but I do anticipate our market continuing to a "normal" market, with inventory levels continuing to decline steadily.  While prices have fallen over the year, the rate at which they are and have fallen continues to decline. And, as I have been seeing and reporting for several months, non-distressed sales of existing homes are actually beginning to see moderate increases over the previous year. Before prices can rise at a consistent rate however, the inventories must fall to normal levels - and I do anticipate this occurring in 2011.

So to all, have a blessed and happy New Year, and please let me know how I can help you with your real estate goals in 2011.