Jacksonville foreclosure lists continued to push first time homebuyers to make their home purchases in September, based on data from the Florida Association of Realtors and the National Association of Realtors.
According to NAR, first time homebuyers nationwide who completed their home purchases in September to beat the federal tax credit expiration comprised 9.4 percent of all September home sales.
First time homebuyers can time their purchases well because they do not have a home to sell first before buying, unlike homeowners who want to move up or to relocate. According to realtor associations, the trade-up home market in many areas of the country is not active.
In Jacksonville, home sales brokered by members of FAR increased to 1,127 units in September, up by 10 percent from the August sales of 1,024 units. What was significant about the sales however was the sharp drop in the median sales price for single-family houses, which fell sharply from the December price of $150,000 to $139,900 in September. This median was the lowest price level experienced by Jacksonville over the past 5 years.
According to FAR members, the sharp drop in home prices was largely caused by the still large number of residential units in Jacksonville foreclosure lists and the high unemployment rate. The jobless rate in Jacksonville rose to 9.92 in September from 9.86 in August.
Meanwhile, pending home sales in Jacksonville also increased in September, based on data from the Northeast Florida Association of Realtors. A total of 1,628 pending home sales contracts were posted while a total of 1,297 sales agreements were closed. Out of these closed sales, 336 were mediated by lenders.
The median sales price remained low, dropping by 15.4 percent to $145,000 compared to September last year.
In addition to the first time homebuyer tax credit, low mortgage rates also enticed buyers to buy, according to realtors. They added that short sales and foreclosure sales continued to slow the housing market, but the increases in pending sales and closed home sales are positive signs.
Local broker Sam Folds said home prices are still low because foreclosure sales and short sales are still driving the market. But he is hoping that the entry of high-end foreclosures into the market will push up prices. He added that bigger foreclosed homes are entering the market because of unemployment.
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