First Coast Home Sales Building from the Bottom Up

By RP Whittington

Over the last month, some realtors have noticed an increase in sales for residential homes valued at $400,000 or less – an early indication that the real estate slide that started last April may soon be over.

"Homes in the $200,000 to $400,000 price point are more active and there are certainly more buyers in that range," said Prudential Network Realty’s Michelle Cummings. "There is still a lot of inventory on the market, so people selling their homes still need to do all the things that ensure it shows like a model and market it the best they can. The competition from other residential properties is still there, but more buyers are coming forward, too."

Cummings says that attaining that "model look," plus taking a hard look at the price point of the home, can make a big difference in this competitive market.

"A home in that price range that shows well, is priced correctly and is marketed well will probably sell in about 90 days, compared to six months or longer if it isn’t," she said.

For home buyers who have been straddling the fence on whether prices would drop any further, their days may be numbered, according to Trecia Crews, a realtor with The Legends of Real Estate.

"I would call it the "trickle-up philosophy" of real estate," said Crews, who has been in real estate sales for 20 years, 10 of those in the Jacksonville market. "When more houses move in the $200,000 to $400,000 range, the people who lived in those homes are able to move up to the $400,000 to $600,000 range, and it permeates upward through to the million dollar homes and above."

Crews recently coordinated the sale of a home where she lives, in the Westwood area in St. Johns County, of a 2,800-square-foot home that sold for $427,000 that never made it to the market. She sold a similar home, an all-brick, 2,350-square-foot home in the South Creek area near Roberts Road for $418,000.

"While there is a lot of inventory out there, buyers can also purchase more home for their dollars now," she said. "They may be taking a lower price for their former home when it sells, but they are buying more new home on the other end of the equation."

Crews also notes that the recent stock market fall of about 500 points in February could also help speed the real estate rebound.

"Historically as the stock market gets more volatile, people, including investors, look more favorably at real estate," she said. "Interest rates are still at great levels, anywhere from 5.5 to 6.5 percent, so it remains a great investment."

Those low rates, coupled with the great deals offered by area lenders, are also putting more first-time home buyers into the mix – especially on the lower end of the housing market.

Jeff Staggs with Lifestyles Realtors in Riverside has sold three homes since January – all to first time buyers.

"These are the buyers in the best possible position," Staggs said. "There’s plenty of inventory for homes in the $120,000 to $200,000 range, they aren’t selling their own home in a buyers market, lenders have programs that require little or no money out of pocket, and interest rates are in a great spot."

Staggs has found that the Murray Hill area is "really hot" for first-time buyers – with homes from 800 to 1,700 square feet priced reasonably at the mid-$100,000’s and up.

"The higher priced homes, including those in Riverside and Avondale areas where I work, are certainly sitting longer and sellers need to anticipate that," he said. "They need to ensure their homes are priced correctly based on comparable sales in their area and take the steps to improve curb appeal and make the best presentation possible."

Companies like Esquire Title & Trust, Inc., which are brought in at the end of the home-buying process, are seeing a slight pick up in activity.

"Homes in the lower end of the price range are starting to move, and there are pockets of activity on the west side and at the beaches that are doing okay," said Esquire Marketing Representative Crystal Draper. "There is still a lot of inventory and a lot of people ‘kicking tires.’ Most of the realtors we work with hoping that as we approach the end of school, buyers who are looking to move laterally or move up will begin closing more deals."

Angela Bradley, a partner with Margi Pettit of Lifestyles Realtors in Atlantic Beach, says it makes sense that with all the choices on the market people are taking their time in making a decision to buy.

"If you had a choice between five cereals to have for breakfast or just two, certainly you make a quicker decision if you only have two, then you move on," Bradley said. "That’s what we are experiencing now."

While Bradley’s home listings are priced at $625,000 and up, she says that the number of potential home buyers she sees has increased in the last two months. And she does agree that as home sales pick up in the $400,000 and lower category that the buying activity will begin to percolate up into the higher-end homes.

"I have no doubt that will happen soon, and it may be what’s happening now," she said. "It’s not a question of if, but when."

Media Contact: Ron Whittington (904-563-0402)