In the midst of the lowest long-term mortgage rates in almost half a century, sales of new single-family homes rose for the third consecutive month in May to a record-high seasonally adjusted annual rate of 1.16 million units.
“This is another indication of what builders in the field have been saying for the last several months. Buyer demand is really being fed by the outstanding financing climate and solid investment potential of new homes,” said Denise Wallace, president of the 1,600-member Northeast Florida Builders Association. “Locally, the housing industry continues to fuel the economy, creating jobs and government revenue. Any unnecessary regulations and taxes, such as impact fees, will do nothing more than weaken what has become the pillar of our Northeast Florida economy.”
According to the association, the median price for the Jacksonville MSA is $136,000. Home mortgage rates slipped to 5.3 percent by late May, and median prices of new homes were up 7.8 percent for the month on a year-over-year basis.
“In addition, thin inventories of unsold new homes are an indication of the continuing health and good balance of this marketplace,” said Wallace. “Today‘s report showed that inventories of unsold new homes in May were down to a 3.5 months’ supply at the current sales rate.
“Only once in recorded history has the months’ supply been this low - in November of 1998.”