Home inventory is in great shape, except at the lower end of the market.
Homes under $250,000 are scarce compared to demand, said Florida Realtors chief economist John Tuccillo.
But don’t expect new home construction to fill that void.
That’s because lot prices are going up, said Anthony Crocco of Metrostudy, a home-construction research firm. Higher-priced lots mean higher-priced homes.
“It’s going to be much more difficult for the builders,” Crocco said. “They’ve been selling homes on lots that they bought during the bust.”
In 2014, new homes built in the Jacksonville MSA increased in every price range except the under $200,000 category. Over two years, the market share of new homes built under $200,000 dropped from 41 percent to 23 percent.
The new price pressures have curbed home starts in St. Johns and Clay counties
In Duval and Nassau, where the rebound lagged, home starts are still growing. But that can’t last, Crocco said.
“My hope is that we see the next round of master-planned communities get financing, so we can start to produce that under $200,000 home product again,” he said.