by Mike Sharkey
Staff Writer
The high-end real estate market in Jacksonville has changed dramatically over the past decade.
In 1995, says Ray Rodriguez of the Real Estate Strategy Center of North Florida, a dozen homes were sold in Duval County for $1 million or more. Five years later, 100 million-dollar homes were sold. This year, Rodriguez expects at least 500 homes in Duval County alone worth $1 million or more to sell.
“That kind of shocked me. I expected an increase, but not that kind of increase,” said Rodriguez. “I expect at least 500 by the end of the year because many homes haven’t come on line yet. Many sales haven’t closed yet.”
Statistics from the Property Appraiser’s Office bear out this increase. While there’s no way to verify how many homes were appraised at $1 million or more 10 years ago, the current figures show that there are 1,160 single-family homes in Duval County that appraise for at least $1 million. That is based on eight criteria: cash value of the property, highest and best use of the property, location, size, cost of improvements, condition, income the house may generate and net proceeds of the sale.
“Anything of any size on the water is probably worth a million dollars,” said Property Appraiser Jim Overton, adding that this has become rule-of-thumb only in the past five years or so. “Lots on the river are going for a million dollars these days. But this market is not nearly as hot as the markets in the Hobe Sound, Jupiter or Sarasota areas.”
According to Overton’s office, there are 976 homes in Jacksonville appraised between $1 million and $1,999,999; 142 homes between $2 million and $2,999,999; 25 between $3 million and $3,999,999; nine between $4 million and $4,999,999; four between $5 million and $5,999,999 and one each between $6 million and $6,999,999 and $7 million and $7,999,999.
Current real estate statistics also support the increase in home values. According to realtor.com, a website of the National Association of Realtors, there are 287 single-family homes and condominiums for sale in the Jacksonville market that have asking prices of $1 million or more.
Of those, 87 have asking prices of $2 million or more, 38 at $3 million or more, eight at $5 million or more and three over $8 million.
The most expensive property on the market is a 33-acre estate in Julington Creek at $11.55 million. The house is a relatively modest four-bedroom, three-and-a-half bathroom, 3,142-square-foot home. However, according to an agent with Realty Executives of Ponte Vedra, a developer has a contract on the property and plans to build condominiums and townhomes on the waterfront lot.
Gayle Washnock is an agent with Manormor Sotheby’s International Realty, which is handling the sale of a 9,013-square-foot home on the river in the San Jose area — the most expensive home currently on the market. Washnock said selling a home like this takes time and the help of an internationally-recognized company such as Sotheby’s. The Internet, she said, plays an important role in the process because, with an asking price of $8.5 million, the home isn’t likely to be part of the next Realtor caravan or weekend open house.
“The home has been on the market for a little over a year and we have shown it four or five times,” said Washnock, who works for Beverly Brandenburger, the listing agent for the house. “The people looking at it are not first-time buyers and have likely sold and bought many homes. The average homebuyer these days is very well-educated and the high-end buyers come with an entourage of their own that includes bankers, lawyers and CPAs (certified public accountants).”
The Internet has also created the ability for literally anyone to find out information about any home that’s on the market. That information superhighway could easily be abused by potential “homebuyers” taking tours of homes they have no intention — or ability — of buying. Washnock said Manormor Sotheby’s uses what they call the “ABC” formula to prevent exposing ultra-expensive homes to would-be thieves or simply unqualified buyers.
The system involves the potential client’s attorney, banker or CPA.
“We make sure they are qualified,” said Washnock. “We do not inquire about their finances, but we do get an official letter faxed to our office from their attorney, banker or CPA saying, yes, they can afford the house in this price range.”
Rodriguez believes that low interest rates have contributed to the increase in million-dollar homes in the area. He said entry level homes are going for more than ever and people who used to look at half-million to $750,000 homes are now buying a million-dollar house because they can afford to.
Most of the million-dollar homes in the area are in Atlantic Beach, Neptune Beach, on Duval Drive in South Jacksonville Beach, Ortega, San Marco, San Jose and Riverside. While all of those neighborhoods are characterized by waterfront homes and lots, Rodriguez says areas of town without waterfront homes will soon crack the million-dollar mark.
“I would keep my eye on the Southeast corridor of Baymeadows and 9A,” he said. “A year or so ago, there was a concurrency application filed to convert that area into 10-plus acre estate homes. They are not out of the ground yet, but those homes will be worth at least $1 million.”