Lisa Barton

As you are probably aware, our local real estate market continued to struggle during the first quarter of 2011. Overall, Northeast Florida experienced about an 11% decline in home sale prices when compared to the first quarter of last year. One reason for the continued decline in home values was the large number of short sales and foreclosures which have been dragging down property prices. The number of bank mediated sales for Northeast Florida continued to rise with 57% of closed transactions being distressed sales during the first quarter.

Luxury real estate sales, especially those at the beach, have improved since the worst of the market but continue to be sluggish. Over half of the properties that sold for over $1 million were located in Atlantic Beach, Jacksonville Beach or Ponte Vedra Beach. Of the 23 homes that sold, 17% were distressed sales, demonstrating that all levels of the market have been hurt by the decline in the housing market.

On a positive note, inventory of available homes is down 21% as is the monthly supply of properties on the market. At the end of the first quarter, there was approximately nine (9) months of inventory.  This is bringing us closer to a balanced market where the supply of homes does not excessively exceed the demand for them. Pending home sales are up almost 8%. Interest rates are still at historic lows allowing people to buy more house for their money. These factors combined have led to a 12% increase in the housing affordability index, making this an ideal time to enter or invest in the real estate market.

So, what's happening at the Jacksonville Beaches?