With all the negative publicity that’s been heaped upon the Real Estate Market locally and nationally I am happy to report that there are signs of improvement. Home prices, just like any other product or commodity, are impacted by supply and demand. When supply is low and demand is high home prices will increase as they did between 2002 to 2006. Conversely when supply is high and demand is low prices fall as they did from 2006 to present. In July of 2007 Jacksonville had nearly 13 months of inventory available for sale. This year the available inventory in July was just over 9 months.
Comparing home sales data from July 2010 to July 2011 shows that the supply of available homes has decreased 22 percent and the number of homes under contract has increased 13 percent. These figures show a sharp decrease in supply and a clear increase in demand. While 2 percent fewer homes were sold this year the sold volume or total cost of homes sold increased by 2 percent and the average sale price has increased 4 percent.
Another factor influencing home sales is the record low interest rates which has a huge impact on home affordability. Consumers are discovering that they can own a home for less than it costs to rent and are taking advantage of the current low prices while they last.
I would recommend anyone considering a home purchase to make their move now before prices go back up.