Jacksonville housing market continues to see an improvement in home and condo sales month after month.
According to Northeast Florida Association of REALTORS (NEFAR), pending home sales in June 2011 increased by 34 percent over June 2010, but the number of closed sales in June dropped compared to June of last year by 15 percent.
There were 1,851 pending sales in June and 1,529 closed sales in Clay, Duval, Putnam and parts of Nassau and St. Johns counties.
NEFAR noted that the median sales price of closed sales dropped by 4.1 percent in June as compared to June 2010, but that was due to the continued downward influence from closing prices of “lender-mediated” sales — foreclosures, sales for less than mortgaged value, or short sales, and sales of bank-owned properties. The median sales price of traditional sales increased by 3.5 percent to $176,000, but the median distressed sales price dropped by 10.3 percent to $89,700, NEFAR reported.
The influence from distressed sales is clearest in the fact that they made up 44 percent of all real estate sales transactions in June, according to NEFAR data.
Inventories were down by nearly 29 percent in June from the previous year, NEFAR noted.
HOUSING AFFORDABILITY INDEX
The housing affordability index for the region points to an expanding market. An index of 120 means the median household income was 120 percent of what is necessary to qualify for the median-priced home under prevailing interest rates; a higher number means greater affordability. For the year to date, NEFAR puts the index at 220, a 10.6-percent improvement over 2010 (199).
With more than 1,800 pending sales in June, the property type with the strongest sales was condominiums and townhouses, up 16.9 percent over June 2010. NEFAR’s report shows that affordability is driving sales, as the median sales price for area condos is down from $90,000 in June 2010 to $70,100 last month, a 22.1-percent decline.
On the upside for sellers of condos, the percentage of the original list price received has slightly increased from 86.5 percent in June 2010 to 86.9 percent last month.
The increase in sales has brought a significant decrease in the inventory of condos and townhomes, down 40.7 percent from June 2010. NEFAR lists the inventory of available condos and townhouses at a 6.6-month supply, down from 12.9 months in June 2010 for a 48.6-percent decrease.
Source: Northeast Florida Association of Realtors, The Florida Times-Union