2006 Homes Sales Down, Median Price Up

25 01 2007

Sales of existing single-family homes in Jacksonville and across the state fell in 2006 while the median price was climbing.

Sales in Jacksonville fell 10 percent compared with 2005, while the median price rose 7 percent to $200,600. Sales were even slower statewide, falling 28 percent from 2005. But the median price of those homes rose 6 percent to $248,300. The figures are from the Florida Association of Realtors.

Sales fell in all 20 of the markets tracked by the FAR, and in 19 of the 20 they fell by double digits. But the median price fell in only six markets, and nowhere by more than 5 percent.

The National Association of Realtors reported that sales of existing single-family homes nationwide dropped 7.9 percent, but maintains the market should rebound in 2007.

“Home sales appear to have bottomed out, having reached a cyclical low in September of last year,” noted NAR Chief Economist David Lereah, who predicts that 2007 will represent a year of stability for the housing sector.

The sales numbers in Florida were even worse for existing condominiums. Sales in Jacksonville fell 19 percent while the median price dropped 3 percent to $165,800. Across the state sales dropped 33 percent while the median price climbed 1 percent to $211,300.

Source: Jacksonville Business Journal

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One response

27 01 2007
David in JAX

The real good news is that the median sales price of single family homes in Jacksonville has fallen 12.4% over the last six months month since the real estate price peak in June of 2006. This coupled with a record inventory and state insurance reforms should help make Jacksonville homes move back into the realm of affordability for the average family over the next two years. As the cyclical history of real estate has shown us, prices will continue to fall as inventory continues to increase. This is great news for potential buyers in Jacksonville since the declines should bring prices back down to their historical mean allowing the average family to move back into the market with traditional financing (ie. not using IO and negative am. loans).

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