by Miranda G. McLeod
Staff Writer
Statewide existing-home median sales prices have increased nearly 100 percent over the last five years, according to the Florida Association of Realtors, rising from $127,400 in 2001 to $254,800 this year.
The Jacksonville metropolitan statistical area continues to be ranked high in housing, despite the recent “doom and gloom media reports” to the contrary, according to Mark Carlson, mortgage banker and branch manger of Wells Fargo Home Mortgage.
“We’re not seeing it,” said Carlson. “We’re not living in a bubble here.”
Northeast Florida Builders Association Executive Director Daniel Davis agrees.
“What we’re seeing in other areas in the state — where there was a large amount of condo construction and high volume of investors flooding the market and there’s a ton of inventory — is not healthy for the new construction market,” said Davis, who is also City Council vice president. “In Jacksonville our numbers are much better as far as inventory and investors that are backing out of the market. The quality of life here, the availability of housing and the jobs we are creating are bar none.
“We are insulated from all the other problems that you might see across the nation and across the state where they’re relying on one industry, or they don’t have the natural resources that we have that attract homebuyers.”
Here are some of the Jacksonville metropolitan statistical area numbers from the past quarter:
• 4,783 existing homes sold this quarter, a decrease of 1 percent compared to the 4,834 homes sold one year ago.
• The market’s existing-home median sales price increased 12 percent to $207,300; a year ago it was $185,400.
• A total of 606 existing condos sold in Jacksonville over the three-month period, up 10 percent from a year ago, while the existing-condo median price fell one percent to $167,700.
Comparatively, the state’s sale of existing condos decreased overall for the quarter, with a total of 16,522 condos sold statewide compared to 24,599 in second quarter of 2005 for a 33 percent decline, according to FAR. The statewide median sales price for condos rose 1 percent to $219,100 for the three-month period; a year ago, it was $217,900.
The declining rate of growth in the real gross domestic product, the rising inventory of homes for sale and the rising costs of gasoline and energy that strain many household budgets while wages barely keep up with the recent price inflation are just a few factors that affect Florida’s housing market, according to Dr. David Scott, the executive director of the Dr. Phillips Institute for the Study of American Business Activity and professor of finance at the University of Central Florida.
The latest economy outlook from the National Association of Realtors notes that the housing market is in the process of stabilizing with little change in overall sales volume expected over the balance of the year. Analysts report that the level of activity remains high historically and 2006 is expected to be the third best year for existing home sales.
When local numbers are put into perspective, Jacksonville maintains productive housing rates.
“A lot of the numbers are national numbers and it’s causing homebuyers to be skeptical,” said Carlson. “The fact is, now is still an excellent time to buy.”