Jacksonville Real Estate Market - Trends for July, 2011
Will Lower Prices Spur Selling Activity?
The jury is still out on whether or not we will see improvements. This is due mostly to continued economic troubles plaguing the nation as a whole.
Jacksonville, Florida real estate has continued a trend it has followed for many months withdeclining prices in most hyper-local markets but some increase in the number of closed transactions.
Agent surveys indicate that traffic (interest from qualified buyers) increased at the end of the month after continued decreases from June as sellers have continued to reduce prices to meet the low demand. Interest rates are lower than ever but there is concern that they could increase quickly and this concern seems to be holding many buyers back from committing.
This fear of commitment is due to the large number of Jacksonville homes for sale that are under water and therefore are Short Sales. Short sales, as everyone now knows, are anything but "short" in terms of the amount of time required to close the transaction.
Buyer traffic had fallen sharply in June so the increase in July was notable. It isn't unusual for traffic to decline in early summer and pick up toward the middle and end of summer as familiesbegin to think of moving before school starts back. Whether or not this increase in traffic will produce an increase in sales is still up in the air. Time will tell...
The fact remains that motivated sellers who price their Jacksonville real estate at or slightly below fair market value are first in line to attract the attention of qualified buyers. If these sellers also have adequate equity in their homes to avoid a short sale situation that's even better!
Cash buyers, particularly in the higher end market, appear to be making their move more and more as they anticipate that we are likely at the bottom of the market decline.
As your straight-talking real estate consultants, you can always count on us to present a true picture of the market. We know that now is not the time for every buyer to make their move... we also know that now is the perfect time for others. If you are on the fence, don't hesitate to contact us. We are happy to help you make the decision that is right for you and your family.