Our pages this month include what I believe is a significant step for the local construction industry: we include Bildor News, the official publication of the Northeast Florida Builders Association.
Bildor News has a long tradition of serving, and serving well, the building community. Including it in our pages expands its reach to the Realtor community, as well.
We’re very proud of Realty/Builder Connection and what we’ve accomplished over the years. The many Laurel Awards reflect that, as does the acceptance by our readers.
Now, with the addition of Bildor News, we’re enhancing what we already do.
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Let’s begin with a multiple choice question. Should we:
a. Hold our breath?
b. Get very excited?
c. Just wait and see?
The U.S. Department of Commerce reported at the end of May that new home sales in the U.S. grew faster than expected in April and home prices showed a positive gain the prior month. Many analysts are saying this is proof of an increasing momentum in our industry.
By now, we all know the figures and some of us probably have them posted prominently in our offices: new single-family home sales rose 3.3 percent in April, almost a 10 percent growth from April 2011. Not only that, home prices increased almost 2 percent in April over March.
Should we be celebrating?
Is the end of this seemingly never-ending nightmare coming to a close?
I certainly do not know, and while I am a normally optimistic person—especially when it comes to Jacksonville—I think I will answer the multiple choice question with the third choice: just wait and see.
After all, while the April numbers are better—and encouraging—the pace of April sales was way below historic levels. Plus, as ironic as it seems, the South was the only region out of four in the U.S. to show a decline.
On the other hand, if this trend continues and our housing inventories begin to disappear, it will be great news for our home building industry.
In Jacksonville, the report at the end of April was mixed, at best. Resale inventories decreased 4 percent, and the median listing price went up. But there were also 988 price decreases vs. 131 price increases.
And, let’s don’t forget that less than a year ago Jacksonville was rated as the worst real estate market in the country by Clear Capital’s Real Estate Market Report. While none of us likes that distinction, we’ve lived it first hand.
When you look behind the April numbers, here are some things that should be encouraging to us:
• We’ve got the summer coming, which can be a strong period in Jacksonville for home sales.
• A large number of new home buyers are also first-time buyers who are taking advantage of low interest rates and bargains as a result of price cuts from the real estate boom years. (This could be fueled at least in part because many parents are encouraging their adult children to move into their own homes).
• Florida is seeing a new influx of baby boomers moving here for retirement, which is also fueling new home starts. There are predictions that the state will gain over 250,000 new residents in 2013, many the traditional northern boomers longing for the sunny life we enjoy. There is no question that Jacksonville will get a share of those new residents.
• Buyers who lost homes to foreclosure have fixed their credit issues and are beginning to move from rentals back to home ownership.
Okay. Now that we’ve covered all of that, let’s do look on the bright side. After all, this is Jacksonville, one of the most beautiful and livable places in America. We are selling homes…and there’s no question that this is a place people want to live.
As an example, one of our newest residents is Mark Nusbaum, new president of The Florida Times-Union. Mark recently moved here after living most of his life in Kansas with shorter stints in Texas and Augusta, Ga. Recently, we had lunch and Mark was effusive in bragging about his new home town.
He told me something that really resonated. As he was driving into downtown for the first time with two of his sons, Mark said he was overwhelmed by the beauty of Jacksonville as he crossed one of our bridges over the St. Johns River. Mark said he told his sons, “This is where I want to live the rest of my life.”
I’ve lived here all of my life. I share Mark’s enthusiasm for our city every day. And, I think as realtors and builders we should always remember that in Jacksonville, we have a lot to sell. Each one of us can make a list of all of the wonderful natural resources and amenities you get when you live here.
We also have quality housing inventory in great neighborhoods at really bargain prices.
So, more than this most recent positive news from the Department of Commerce, it is those things that fuel my optimism about our future. We will eventually come out of this. And, like you, I am hoping it is sooner than later.
— Jim Bailey is publisher of Realty/Builder Connection and president of Bailey Publishing & Communications, Inc.
He can be reached at [email protected].