Soft Landing in Housing Market

29 07 2006

Data compiled from city and county building departments by the Northeast Florida Builders Association show the greater Jacksonville area growth rate has stabilized.

With 1,099 single-family permits issued in June in a four-county area, construction has tapered off. Last year, 8,829 permits were issued in the first half of the year. This year, 7,077 permits were issued during the same time.

Building permits declined in Nassau County from 87 in May to 75 in June. For the year, 486 building permits have been issued in Nassau, compared to 1,306 in all of 2005 and 1,238 in all of 2004.

Duval County reported an increase, with 659 permits issued in June, 572 in May. Clay was nearly even with 132 permits in June and 134 in May. St. Johns reported 233 permits in June, 242 in May.

Citing an article in the June edition of Money magazine, past NEFBA President Bryan Lendry noted that as red-hot real estate markets cool down the general effect will be what Money calls a “soft landing.” Money ranks Jacksonville No. 6 in the nation in terms of projected growth. McAllen, El Paso, Dallas and Houston in Texas and New Orleans take up the top five spots.

Money reports that the median home price in the Jacksonville area is $200,000, a 20.9 percent increase in the past year and 78.1 percent change over five years.

Even with a slowdown to a local growth rate of 8 percent, which is what experts are predicting, 2006 would still be the third best year for the residential construction industry in recent history.

Source: Florida’s News Leader





Soft Landing in Housing Market

28 07 2006

Data compiled from city and county building departments by the Northeast Florida Builders Association show the greater Jacksonville area growth rate has stabilized.

With 1,099 single-family permits issued in June in a four-county area, construction has tapered off. Last year, 8,829 permits were issued in the first half of the year. This year, 7,077 permits were issued during the same time.

Building permits declined in Nassau County from 87 in May to 75 in June. For the year, 486 building permits have been issued in Nassau, compared to 1,306 in all of 2005 and 1,238 in all of 2004.

Duval County reported an increase, with 659 permits issued in June, 572 in May. Clay was nearly even with 132 permits in June and 134 in May. St. Johns reported 233 permits in June, 242 in May.

Citing an article in the June edition of Money magazine, past NEFBA President Bryan Lendry noted that as red-hot real estate markets cool down the general effect will be what Money calls a “soft landing.” Money ranks Jacksonville No. 6 in the nation in terms of projected growth. McAllen, El Paso, Dallas and Houston in Texas and New Orleans take up the top five spots.

Money reports that the median home price in the Jacksonville area is $200,000, a 20.9 percent increase in the past year and 78.1 percent change over five years.

Even with a slowdown to a local growth rate of 8 percent, which is what experts are predicting, 2006 would still be the third best year for the residential construction industry in recent history.

Source: Florida’s News Leader





New Development in Southside

23 07 2006

I have heard of several new development coming to Jacksonville’s Southside area. It goes without saying that residential home vaule will continue to rise as we see more demand for prime real estate. Alison Trinidad wrote the following article in the Florida Times Union:

“New development on the Southside has been talked about for years. And, for the most part, it has come to fruition.

That’s why, after looking at the building plans turned in to the city over the past few weeks, I have no doubt the area is going to get even busier.

Yes, busier than the already long lunch lines at St. Johns Town Center, the seemingly endless traffic jams going both north and south on Southside Boulevard at quitting time and the weekly Friday-night hunt for parking spots at Tinseltown.

Some of the submitted proposals include two new condo complexes, an extended stay hotel, a small strip mall and more than 770,000 square feet of office space. That doesn’t include site clearing for a Sheraton hotel at Deerwood Park Boulevard or construction of a 474-unit residential project on Gate Parkway West, both of which were permitted this month.

Of course, proposals are just proposals – with issues like buying property, securing appropriate financing and determining whether the existing road and sewer systems can support the project still uncertain. Developers stress that the plans are in their “preliminary” stages, which means the structures might not be built for at least couple of years, if at all.

Sure, there still are many skeptics; I mean, I don’t see a Nordstrom or Macy’s anywhere, yet, do you? But, the reality is that Southside is booming, and when developers who have a proven track record of coming through on their proposals say they plan to build more, who can argue?

It’s the type of activity that ought be happening downtown, not Jacksonville suburbia.

Downtown advocates would argue that development there is beginning to stir, what with Club Paris making a splash at The Jacksonville Landing and a couple of condo towers nearing completion. But Southside has two things going for it that, at this point, downtown is lacking: a concentration of both retail spots and residents. The momentum on the Southside is there – and it’s building.

There’s Deerwood Lake LLC, the partnership that masterminded Deerwood Lake, a more than $200 million project west of Southside Boulevard at Touchton Road. Portions of the property were sold off a few years ago, which now are home to a Publix shopping center and Beazer Homes’ Deerwood Place condominiums. The Shoppes of Deerwood Lake boasts hot spots like Aromas Cigar & Wine Bar and Fuseboxx. The partnership has received initial approvals from the city to build 310 condos in two separate projects and a 120-room Staybridge Suites off Deerwood Lake Parkway, one block west of Southside Boulevard.

Then, G.L. National Inc. – the real estate development arm of Gate Petroleum that is also building Kendall Town Center near Regency – applied to put up five retail and restaurant buildings on the 7 acres it owns southeast of the Southside Boulevard and Gate Parkway intersection. No tenant names were specified.

Heading east on Gate Parkway toward St. Johns Town Center, Blue Cross and Blue Shield of Florida has applied to build four more office buildings on its 137-acre campus. The Jacksonville-based health care company has five existing buildings there. Plans show that the additions would total more than 770,000 square feet.

It may be years before we see anything going up, but you can be sure the wheels are turning.”

Source: The Florida Times Union





New Development in Southside

22 07 2006

I have heard of several new development coming to Jacksonville’s Southside area. It goes without saying that residential home vaule will continue to rise as we see more demand for prime real estate. Alison Trinidad wrote the following article in the Florida Times Union:

“New development on the Southside has been talked about for years. And, for the most part, it has come to fruition.

That’s why, after looking at the building plans turned in to the city over the past few weeks, I have no doubt the area is going to get even busier.

Yes, busier than the already long lunch lines at St. Johns Town Center, the seemingly endless traffic jams going both north and south on Southside Boulevard at quitting time and the weekly Friday-night hunt for parking spots at Tinseltown.

Some of the submitted proposals include two new condo complexes, an extended stay hotel, a small strip mall and more than 770,000 square feet of office space. That doesn’t include site clearing for a Sheraton hotel at Deerwood Park Boulevard or construction of a 474-unit residential project on Gate Parkway West, both of which were permitted this month.

Of course, proposals are just proposals – with issues like buying property, securing appropriate financing and determining whether the existing road and sewer systems can support the project still uncertain. Developers stress that the plans are in their “preliminary” stages, which means the structures might not be built for at least couple of years, if at all.

Sure, there still are many skeptics; I mean, I don’t see a Nordstrom or Macy’s anywhere, yet, do you? But, the reality is that Southside is booming, and when developers who have a proven track record of coming through on their proposals say they plan to build more, who can argue?

It’s the type of activity that ought be happening downtown, not Jacksonville suburbia.

Downtown advocates would argue that development there is beginning to stir, what with Club Paris making a splash at The Jacksonville Landing and a couple of condo towers nearing completion. But Southside has two things going for it that, at this point, downtown is lacking: a concentration of both retail spots and residents. The momentum on the Southside is there – and it’s building.

There’s Deerwood Lake LLC, the partnership that masterminded Deerwood Lake, a more than $200 million project west of Southside Boulevard at Touchton Road. Portions of the property were sold off a few years ago, which now are home to a Publix shopping center and Beazer Homes’ Deerwood Place condominiums. The Shoppes of Deerwood Lake boasts hot spots like Aromas Cigar & Wine Bar and Fuseboxx. The partnership has received initial approvals from the city to build 310 condos in two separate projects and a 120-room Staybridge Suites off Deerwood Lake Parkway, one block west of Southside Boulevard.

Then, G.L. National Inc. – the real estate development arm of Gate Petroleum that is also building Kendall Town Center near Regency – applied to put up five retail and restaurant buildings on the 7 acres it owns southeast of the Southside Boulevard and Gate Parkway intersection. No tenant names were specified.

Heading east on Gate Parkway toward St. Johns Town Center, Blue Cross and Blue Shield of Florida has applied to build four more office buildings on its 137-acre campus. The Jacksonville-based health care company has five existing buildings there. Plans show that the additions would total more than 770,000 square feet.

It may be years before we see anything going up, but you can be sure the wheels are turning.”

Source: The Florida Times Union





Why Rent When You Can Buy

21 07 2006

Are you unsure about becoming a HOMEOWNER? Thinking that you can’t afford to BUY a home? Are you worried about whether homebuying is a good INVESTMENT? Too often, renters look at their current monthly rent payment, compare it to the cost of owning a home, and decide the latter is “something I can’t afford.” But the financial advantage of homeownership, from property appreciation to income tax deductions, makes renting more expensive.

According to the National Association of Realtors®, renting can cost seven times more annually than owning. Buying a first home can be an intimidating process. But the first step is making those first decisions; I want to own my own home makes sense for me financially and emotionally. If you are still struggling with those first decisions, here are some facts that might help you make that first step towards becoming a homeowner.

Over the last ten years, the cost of rental housing in the U.S. has increased an average of 3 percent per year. That means that an apartment or home renting for $1,000 per month will cost more than $1,300 a month in ten years. If you rent the same home for ten years, the total amount you would pay for rent will equal $137,567, with no wealth accumulation!

Tax Advantage of Owning a Home Result in Savings

None of that $137,567 is returned to you, either through savings or as an investment. Homeownership, on the other hand, has tax advantages over renting a home, and those advantages can help you save money. Unlike your monthly rent, part of your monthly mortgage payment “comes back to you” in tax savings.

Homeownership is a Good Investment

For the majority of Americans, their home is their larges financial asset and a major player in their investment portfolio. It’s a good thing, too, since stock market value has declined since 1998, while home price appreciation has increased. The National Association of REALTORS estimates that home value rises, on average, by 4.5 percent a year. That’s a steady return on investment; one’s own homes is a much less volatile asset than stocks, bonds or mutual funds.

The Federal Reserve Board estimates that homeowners have a net worth nearly 36 times more than renters. For example, a $210,000 home purchased today with a downpayment of $10,000 and a 20-year fixed rate mortgage at 6.5 percent would cost a steady $1,100 per month and yield a net worth of $138,521 after 10 years, assuming an historic 4.5 percent annual appreciation rate.

Source: National Association of REALTORS





Why Rent When You Can Buy

20 07 2006

Are you unsure about becoming a HOMEOWNER? Thinking that you can’t afford to BUY a home? Are you worried about whether homebuying is a good INVESTMENT? Too often, renters look at their current monthly rent payment, compare it to the cost of owning a home, and decide the latter is “something I can’t afford.” But the financial advantage of homeownership, from property appreciation to income tax deductions, makes renting more expensive.

According to the National Association of Realtors®, renting can cost seven times more annually than owning. Buying a first home can be an intimidating process. But the first step is making those first decisions; I want to own my own home makes sense for me financially and emotionally. If you are still struggling with those first decisions, here are some facts that might help you make that first step towards becoming a homeowner.

Over the last ten years, the cost of rental housing in the U.S. has increased an average of 3 percent per year. That means that an apartment or home renting for $1,000 per month will cost more than $1,300 a month in ten years. If you rent the same home for ten years, the total amount you would pay for rent will equal $137,567, with no wealth accumulation!

Tax Advantage of Owning a Home Result in Savings

None of that $137,567 is returned to you, either through savings or as an investment. Homeownership, on the other hand, has tax advantages over renting a home, and those advantages can help you save money. Unlike your monthly rent, part of your monthly mortgage payment “comes back to you” in tax savings.

Homeownership is a Good Investment

For the majority of Americans, their home is their larges financial asset and a major player in their investment portfolio. It’s a good thing, too, since stock market value has declined since 1998, while home price appreciation has increased. The National Association of REALTORS estimates that home value rises, on average, by 4.5 percent a year. That’s a steady return on investment; one’s own homes is a much less volatile asset than stocks, bonds or mutual funds.

The Federal Reserve Board estimates that homeowners have a net worth nearly 36 times more than renters. For example, a $210,000 home purchased today with a downpayment of $10,000 and a 20-year fixed rate mortgage at 6.5 percent would cost a steady $1,100 per month and yield a net worth of $138,521 after 10 years, assuming an historic 4.5 percent annual appreciation rate.

Source: National Association of REALTORS





Real Estate Watch: Home Sales Expected to Stabilize in the Months Ahead

14 07 2006

Home sales are projected to ease modestly but should stay within a relatively narrow range over the balance of the year, according to the National Association of Realtors.

David Lereah, NAR’s chief economist, said the market is showing signs of stabilizing.

“The major housing indicators have been moving up and down within a reasonable range, which means the market should even-out just below present levels,” he said. “At the same time, housing inventory levels are balanced in much of the country, so overall price appreciation will be at a normal rate. We should see home sales rise and fall month to month, but don’t look for any big shifts one way or the other.”

NAR President Thomas M. Stevens from Vienna, Va., said consumers who have been on the sidelines should feel more confident about the market normalization. “When it comes to big ticket purchases, buyers are more comfortable in a stabilizing environment,” said Stevens, senior vice president of NRT Inc. “At the same time, home sellers in most areas understand that the period of abnormal price growth is over, and they have become more realistic about the current market. This is helping to ease the pressure on home prices in some areas.”

Source: RISMedia








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