Jacksonville ranks 4th in Best Performing U.S. Home Sale Market in January

8 02 2011

Metro Jacksonville was the fourth highest performing home sale market in the nation in January, according to Clear Capital’s monthly home data index report.

The report, released Thursday, analyzes how local markets compare with the national trend in home prices.

Home prices in Jacksonville improved by 3.5 percent quarter-over-quarter, according to the report, though they were down nearly 8 percent year-over-year.

Real-estate-owned saturation, which Clear Capital defines as the percentage of REO properties sold compared with all properties sold in the last rolling quarter, was nearly 30 percent in Jacksonville.

“This recent national change in price direction is encouraging for the overall housing sector, yet it is still too early to determine whether this current uptick in home prices is a temporary reprieve or the start of a sustained recovery,” Alex Villacorta, senior statistician at Clear Capital, said in a news release.

The highest performing market, the Cleveland metro area, improved by 8 percent.

Orlando was No. 13 on the list of top performing markets, with a quarter-over-quarter increase of almost 1 percent in home prices. The Miami area was No. 15, with a decline of 0.4 percent.

Source: Jacksonville Business Journal





Jacksonville Ranks 6th in Top 10 Cities to Buy

8 02 2011

Despite the rising number of renters across the country, it is cheaper to buy a home rather than rent one in 72 percent of the 50 largest cities in the U.S., according to an index released by real estate search and marketing site Trulia.

“Since the start of the ‘Great Recession,’ many former homeowners have flooded the rental market. Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets,” said Pete Flint, CEO and co-founder of Trulia, in a statement.

“Though necessary for achieving true economic recovery, stricter bank lending practices have also further aggravated the struggling housing market in the short term. Even highly qualified homebuyers face intense scrutiny on their income, savings, existing debt and credit history before they can get a mortgage loan.”

Trulia’s rent vs. buy index compares the median list price with the median rent on two-bedroom apartments, condominiums and townhomes listed on Trulia.com as of Jan. 10, 2011.

A price-to-rent ratio of 1 to 15 means that it’s much cheaper to buy than to rent in a particular city. A ratio between 16 and 20 means that it’s more expensive to rent than to buy, but, depending on the family’s situation, buying could “make financial sense,” the site said. Any ratio above 20 indicates that owning is much more costly than renting in a city.

In 36 out of 50 of the country’s most populous cities, buying a two-bedroom home is less expensive than renting one. These cities include many areas that have been hit hard by foreclosures, such as Las Vegas, Phoenix and Fresno, California.

Top 10 cities to buy vs. rent:

Rank
City State Price to Rent Ratio
1. Miami Fla. 6
2. Las Vegas Nev. 6
3. Arlington Texas 7
4. Mesa Ariz. 8
5. Phoenix Ariz. 8
6. Jacksonville Fla. 8
7. Sacramento Calif. 10
8. San Antonio Texas 11
9. Fresno Calif. 11
10. El Paso Texas 11

Source: Trulia

In 10 cities, renting is cheaper, but buying might make more financial sense, according to Trulia. These cities include Los Angeles, Boston, and Fort Worth, Texas.

The index considers the total cost of homeownership compared to the total cost of renting. Calculations for the total cost of homeownership include mortgage principal and interest, property taxes, hazard insurance, closing costs at time of purchase, homeowners association dues, and private mortgage insurance. The homeownership cost calculation also includes tax advantages from mortgage interest, property tax and closing-cost deductions.

Calculations for total rental cost include rent and renters insurance.

The total cost of homeownership was highest, compared to the cost to rent, in New York; Seattle; Kansas City, Mo.; and San Francisco.

Top 10 cities to rent vs. buy:

Rank City State Price:Rent Ratio
1. New York N.Y. 31
2. Seattle Wash. 24
3. Kansas City Mo. 21
4. San Francisco Calif. 21
5. Memphis Tenn. 20
6. Los Angeles Calif. 20
7. Fort Worth Texas 19
8. Oakland Calif. 18
9. Portland Ore. 18
10. Albuquerque N.M. 18

Source: Trulia

“Although owning a home is relatively more affordable in most cities, market conditions have caused an interesting demographic swap between traditional renters and buyers,” said Tara-Nicholle Nelson, consumer educator for Trulia, in a statement. Nelson is also an Inman news columnist.

“For example, lifelong renters are seizing the opportunity to become homeowners while affordability is high. At the same time, a growing number of longtime homeowners are finding themselves tenants — some by choice and others by necessity.”

Through newly acquired startup Movity, Trulia created interactive maps comparing each city’s population, projected job growth, and unemployment and foreclosure rates.

Source: Inman News








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