EDITOR’S NOTE: Contributing Columnist, Steve Nicklas, expresses his views and insights on various topics in Marketplace column.
___STEVE’S MARKETPLACE___
In Northeast Florida, encouraging developments for the real estate market have been as sparse as recent rainfall.
However, the drought may be subsiding — replaced by droplets of tempered optimism. Consider this recent news:
– Foreclosures have declined by 52 percent year over year within the Jacksonville metropolitan area that includes Duval, St. Johns, Clay, Nassau and Baker counties.
– Fernandina Beach experienced the second-highest increase (by percentage terms) among cities in the state in home sales prices over the last two quarters.
– High-end condominiums have felt a resurgence in demand. Along the Jacksonville Beaches, sales in high-end condos such as Ocean’s Edge, Acquilus III and Water’s Edge have been robust in recent months.
– Florida has somewhat escaped the grasp of the foreclosure phenomenon as compared with other hard-hit states. Florida is now sixth-worst in the country for foreclosed properties, compared to second-worst just a couple of years ago.
All is not rosy, however. Even though foreclosures have declined from last year to this year, many believe it is because the channels in Florida have become clogged with a glut of inventory. This glut includes short sales, another problematic development across the U.S.
In Florida, one in every 372 housing units is a foreclosed property. Arizona has the dubious distinction of having the highest foreclosure rate — with one house in every 205 being distressed.
In Fernandina Beach, home sales prices have soared by 36 percent in recent months — to an average price of $257,790. Although this bodes nicely for Nassau County, not all is rosy.
Neighboring Yulee experienced one of the top declines — by 19 percent — in prices of homes sold in recent months. The average home price was $122,918.
Even so, “We’re not anywhere as bad as South Florida,” says Florance Churchill of Century 21 in Fernandina Beach. “But we’re getting hit.”
It appears that properties near the ocean continue to fare better than those inland — even with condominiums. Within a six-week period this spring, a record 16 units were sold at Ocean’s Edge in Jacksonville Beach.
In fact, so many had sold that the management company there held a spring party to celebrate. The prices ranged from $161,000 to $259,000, but, most importantly, were purchased by people in affluent, sophisticated professions.
Two Jacksonville Beach-area condos have sold for more than $1 million since the beginning of the year — for $1.4 million in Acquilus II and for $1.5 million in Costa Verano. In all of 2010, only two condos sold for more than $1 million in Jacksonville Beach.
While a downpour of sales activity may not be on the radar map, a sprinkling of positive news is nonetheless refreshing.
________________
Steve Nicklas
Steve Nicklas is a financial advisor with a major Wall Street firm who lives on Amelia Island. His business columns appear in the Fernandina Beach News-Leader as well as other area newspapers. He can be reached at 904-753-0236 or send eMail to thenicklasteam2@msn.com.
