by Joe Wilhelm Jr.
Staff Writer
The darkness of the real estate market hasn’t begun to lift yet but a local market analyst has seen some points of light in the local industry.
“I understand the market is volatile right now. It’s a new time and the market is changing,” said Ray Rodriguez of The Real Estate Strategy Center of North Florida. “Are we in bad shape? You betcha.”
But, he said, the smart Realtor can snap up what’s out there and he offered some ideas at a recent meeting of NEFAR’s Downtown Council:
• Pay attention to all factors, like the price of gasoline. “We saw the out-migration to the suburbs during the ‘80s. Now we are seeing, for whatever reason, people moving back to the urban core. If gas prices go back up to where they were, that might become an even stronger movement to live closer to where people work.”
• Present buying a home as a long-term investment instead of a quick return. “It’s the people that hang on for the next 5-10 years that will see the value of the property go back up.”
• There are new players in the industry who are adding inventory and, with a little more excitement in his voice, Rodriguez talked about Advantage Home Builders, L.A.B. Homes, JDB Homes (formerly Jacksonville Design Build), and Magnolia Homes. “L.A.B. Homes was the first company to start buying up properties with trailers on them, tearing them down and building single family homes,” said Rodriguez. “Bits and pieces, that’s what the industry is doing right now.”
• Look for every opportunity. “Duplexes are great right now,” he said. “And many areas — like Jacksonville’s Riverside — are drowning in them.”
• “Make sure the property is wheelchair accessible,” said Rodriguez, who uses a wheelchair himself. “For instance, in rental property, most likely you’ll get a long-term tenant because they have accessibility.”
One reason for escalating occurrences of foreclosure cases is because there are more people who are in need than there is help available.
“In 2008, there were over 13,000 foreclosure filings in Northeast Florida,” said Rodriguez. “We now have the TARP (Troubled Assets Relief Program) and the program has helped about 400 people so far, but there are a lot more people that need help.”
This market has not only affected those looking to buy houses, but also those selling. Rodriguez took a look at the real estate along State Road 210 as an example of what the market has become.
“In 2007, the average gross profit on a house sold along the 210 corridor was $61,000,” said Rodriguez. “That same house in 2008 provided an average gross profit of $6,900.”
“With profits dropping and foreclosures increasing, businesses in the real estate markets have to find a way to take advantage of these fluctuations,” he said.