The Florida Association of Realtors just released their August median sales prices report for single family residences.  We have been anxiously awaiting these results because it will, hopefully, give us insight as to the direction of the market.  Are prices still declining?  If so, by how much?  Are they stabilizing?  Are they rising?  (Hey, it could happen!)  What we’re looking for is any indication of “the bottom.”  

If you remember from last month report,  home sales prices for the Jacksonville MSA (five counties) have been in a relative free fall since June, 2006.  Not as severe when compared to Florida statewide prices, but in double digit declines, nevertheless.  

Since the first of the year, however, prices seem to be stabilizing.  So, let’s take a look at August 2009 results.

The red line is Florida as a whole.  Notice, it shows the last three months in a row with prices in the $148,000-ish range.  The bottom seems to be in April with prices averaging $138,500.

The blue line is the Jacksonville MSA.   Do you see the “yo-yo” effect in the first part of the year.  With prices bouncing up and down it is difficult to make any serious prediction as to the market’s direction.  

The Good News:  August prices did not yo-yo out.  They were only slightly down from the previous month.  Even though, the overall trend seems to be somewhat downward, the price decline is slowing and seems to be stabilizing from the $145,000 low we saw earlier in the year.   In fact, that’s a 7% improvement from the first of the year!!   Compare this 2009 improvement to the 15-17% price reductions from previous years and this is really good news.

What does this mean to the investor?  Good deals are still a-plenty.  Prices today are better than they were four years ago. It is also likely we have seen the pricing bottom.  Well, let’s be cautious…considering the number of REOs still coming on the market, median sales prices will likely remain a bit soft in the short term, but the pricing free fall seems to be past.

Demand is up.  In the JaxMSA, demand is up 17% from the previous year.  (Statewide, demand is up 28%)  As demand increases, so do prices - or, at least, stabilize.  Realtors are reporting nice homes in good to excellent condition are getting multiple offers.  

The fourth quarter typically produces lots of motivated sellers.  The majority of these motivated sellers will be lenders with REO’s who want to clear them off their books by year end.  Are you ready for this coming sell-off?  Do you have your financing in place to take advantage of the good deals coming your way?  If not, do it now.  Plan on getting a good deal (or two) when properties go on sale during the 4th quarter.  If you need help, let me know.

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I Want to be your Realtor
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When you use me to submit your offers or to search for property, you get a second pair of “investor-eyes” helping you evaluate the property PLUS the latest up-to-date market information on the buy side AND on the sell side PLUS an experienced investor-friendly realtor looking out for your best interests throughout the entire buying process.  

Best of all, it’s free.  The bank/seller is paying me to work for you!!! (Is this a great country or what?)  So, call me 904 651-4493 if you’re looking for a good deal - no matter if you’re buying, selling or investing.

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New software recently released allows you to search the LOCAL MLS like an  agent.  Using this software, you  have access to TIMELY, up-to-date data on the active, pending, and sold listings in NE Florida market PLUS more options when defining your search criteria for property.  Click here for sign up. (Everyone who has used it, loves it.)

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Visit my Website - The Home of the Good Deal
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Be sure to visit my website www.Homes4Jax.net  for the latest stats and other helpful information for the investor,homeowner and homeowners-to-be.

Hoping this year will be your best year yet,

Lee Hughes, aka Mr. Good Deal
Keller Williams First Coast Realty
2233 Park Ave., Orange Park, FL  32073
(904) 651-4493
GetGoodDeals@Homes4Jax.net