Home Values in Jacksonville, FL for September ‘08

As mentioned in previous posts, one of the key factors influencing the value of real estate is the level of inventory in a given market.  Inventory shows us how supply and demand is changing at different times and what affect that is having on values.

According to a recent article on the FAR website home values have receded to a level comparable to October 2005.   This, in my estimation, is a fairly accurate statement.

Taking a look at the Jacksonville Real Estate Market our current level of inventory is at 14.78 months (Basically, if buying activity remained as it was in August and no more houses came available for sale.  It would take 14.78 months to sell all of the homes that are currently available).  A healthy market will have inventory levels less than 9 months.  We had seen steady progression in buyer activity dating back to January ‘08.  However, there was a little slip in July and August that probably represents the normal, seasonal slow down of real estate in the fall months.

It remains to be seen how the “Bailout Bill” will affect local real estate markets, in particular Jacksonville.  Hopefully, the influx of new money to lending institutions will allow more buyers into the market and level things out a bit.

As always, comments are welcomed!