As new home sales in the nation fell just three percent in March, single-family building permits in North Florida are ahead of last year’s record pace after the first quarter.
Providing further evidence that the market for new single-family homes remains on an even keel, the State’s Commerce Department revised substantially upward its previous reports on January and February home sales and reported a healthy, seasonally adjusted annual rate of 878,000 sales in March — down 3.1 percent from an exceptionally strong 906,000-unit rate in the previous month.
“Today’s sales report confirms that the new-homes market had a very good first quarter, aided in part by our goal to provide affordable housing and the low interest rates on home mortgages, which continue in the 7 percent range,’ said Northeast Florida Builders Association President Denise Wallace.
There have been 2,289 permits issued in Duval, Clay, Nassau and St. Johns counties compared to 2,005 for the first quarter of 2001.
Three of the four counties reported a slight decrease in March permits from the previous month’s figures.
Wallace pointed to Commerce Department figures indicating that the median U.S. home price rose 6.8 percent between the fourth quarter of 2001 and first quarter of 2002, and rose 6.25 percent between March 2001 and March 2002, to a level of $176,700.
In Jacksonville, the median family income is $54,000 and the median sales price is $127,000, according to the National Association of Home Builders. This places Jacksonville as the most affordable major market in the state for the third consecutive quarter. The latest Housing Affordability Index placed 78.4 percent of new homes affordable for the median income.
The HOI is a measure of the percentage of homes sold that a family earning the median income can afford to buy.
“This is welcome news for our builders as the spring buying season begins and in Northeast Florida coincides with our Parade of Homes,” she said, “as well as for buyers who rightfully view homes as very good investments.”
Entries in the 2002 Parade of Homes were up 20 percent over last year, with 104 homes entered in the event that started May 4.
“Recent speculation of a housing price ‘bubble’ is refuted by this report, which shows that home prices are moving up nicely,” Wallace added.
County permits remained strong despite three reporting decreases from February’s stats. Duval reported 325, down 33; St. Johns 116, down 81; Nassau County 71, up 1; Clay County 130, down 26.