AMELIA ISLAND THIRD QUARTER 2006 HOME SALES
It’s no secret that real estate market activity has slowed in 2006 in the Amelia Island area, and across much of the nation. One need only watch television to hear commentators report gloomy statistics on the housing market. We all need to remember that real estate is a cyclical industry, and most property owners have enjoyed some unprecedented gains in their property values in recent years. A cooling, often referred to as a “stabilization,” of the real estate market was inevitable.
The number of sales in 2006 are fewer with the real estate slowdown. It’s more of a buyer’s market in the Amelia Island area, since buyers now have more choices with higher level of properties for sale this year compared to recent years. Buyers are also under less stress to make a quick decision to buy than recent years, since currently it’s more unlikely another buying is lurking and ready to pounce. Fewer serious buyers are around, with more home inventory available, so those buyers, many of whom are “just looking,” can be more “picky.”
Part of the underlying hesitation of buyers is due to market conditions elsewhere in the nation. With home sales slow in most markets around the country, buyers who do wish to purchase an Amellia Island area home often are waiting for their existing home elsewhere to sell first before making a purchase commitment here. Whereas the real estate consumer in the "hot" market had much more confidence that their existing home would sell quickly (and often did not hesitate to go to contract on a local home, feeling they'd sell their other home quickly), the current psyche of many buyers is now much different.
SINGLE-FAMILY HOME SALES FALL 42% IN THIRD QUARTER
During the third quarter of 2006, single-family home sales transactions on Amelia Island fell about 42% from the number of sales recorded during last year’s third quarter. From July 1, 2006 through September 30, 2006, according to the Amelia Island/Nassau County MLS, 62 single-family residences located on Amelia Island (areas 1 through 6 in the MLS) sold at a median price of $369,950. By comparison, last year third quarter sales numbered 106, at a median price of $356,500. Clearly, far fewer properties sold during this year’s third quarter, but median prices were 3.8% higher this year than during last year’s third quarter.
OCEANFRONT CONDO SALES -- ONE-THIRD THE ACTIVITY OF LAST YEAR
Looking at oceanfront condos on Amelia Island, regardless of what condo complex (so as a broad group), the number of sales transactions is down dramatically in the most recent quarter (July 1, through September 30, 2006), with only 11 sales of oceanfront condos recorded in the Amelia Island/Nassau County MLS during the 3Q06, compared to 30 sales last year during 3Q05. The median price of an oceanfront condo on Amelia Island sold during the third quarter of 2006 was $545,000, compared to $707,500 during the third quarter last year in 2005. Note that this broad data can be deceiving (not comparing “apple to apple.”) For a more accurate picture of price trends, you’d have to compare last year’s sales of the same size condo unit, same floor plan in the same complex on the same floor (since higher floor oceanfront condos typically sell for a higher price) with a similar unit, same complex this year. With only 11 oceanfront condos sold during the third quarter 2006 (only one-third of the sales activity seen last year during the third quarter), there weren’t any very similar condo units in the same complex sold year-to-year to accurately examine pricing trends.
SALES IN POPULAR SUBDIVISONS NEAR BEACH
Rather than looking at all the sales on the island, it’s better to compare sales within the same neighborhood (or condo complex) year-to-year, to get the best picture of trends. Let’s look at a “micro” segment of the Amelia Island market – the type of home that has been popular with many buyers looking for a primary residence or second home.
A desirable type of community on Amelia Island has been the single-family subdivisions with close beach access. Some of these popular neighborhoods are truly walkable to the beach, located behind South Fletcher Avenue near the beach and close to Egan’s Greenway park. Take a look at sales activity in seven subdivisions on Amelia Island near the beach: Seaside, Ocean Cay, Ocean View Estates, Ocean Sound, Beach Walk, Ocean Oaks and Sea Grove.
So looking at the first nine months sales last year in 2005 in these seven popular subdivisions near the beach, compared to this year, are prices stable, going down or rising? Prices are up substantially – up 19% in the 9 months ended September 30, 2006, compared to last year’s median price. While transaction activity is down substantially in this softer market environment, property values overall remain higher. Take a look below:
SALES IN SEASIDE, OCEAN CAY, OCEAN VIEW ESTATES, OCEAN SOUND, BEACH WALK, OCEAN OAKS, AND SEA GROVE – FIRST NINE MONTHS 2006 VS. 2005
According to data in the Amelia Island/Nassau County MLS, during the first 9 months of 2006 (Jan. 1, to Sept. 30, 2006), eleven homes were sold by Realtors in these popular subdivisions walkable to the beach, at a median price of $477,750 (median means half sold for more, half sold for less). A year ago, the median sales price of a home in these communities was $400,000, for the first nine months in 2005. Thus, the median price in 2006 through September 30, 2006 is up 19%, according to MLS data.
However, the number of sales are down dramatically, with sales activity cut in about half, with 21 sales closed last year during the first nine months vs. only 11 this year in these seven neighborhoods by the beach. When the market was sizzling hot, some homes in these neighborhoods would sell in a week or less, with Realtors® trying to quickly get a contract on the table before a competitor. These days, with fewer serious buyers around ready to “act,” buyers have more to look at, more time to think about a purchase, and better available selection. This year in 2006, more homes have been for sale, some being “withdrawn” from the market by the sellers, without a sale.
Note that home and condo sales figures are derived from data searches in the Amelia Island/Nassau County MLS (Multiple Listing Service) for the time periods indicated in the article. The MLS data may contain errors, and is not guaranteed. Not all Amelia Island Plantation property sales are reflected in the MLS data. Properties on the Plantation that are listed for sale with the Plantation’s "in-house" real estate department are not included in MLS data.
OCTOBER SALES DATA JUST RELEASED FROM FAR
According to the Florida Association of Realtors (FAR), the most recently released sales data indicates 12,773 existing single-family homes sold statewide in October 2006, a decrease of 22 percent in sales activity from the 16,407 homes sold during the previous October 2005. Statewide, the existing-home median price remained bascially flat at $242,500 in October 2006 compared to $243,400 in October 2005.
Sales of Florida's existing condominiums also decreased in October 2006, with 3,440 condos sold statewide, compared to 5,001 in October 2005, for a 31 percent decrease in sales activity, according to FAR. The statewide median sales price for a condominium in October 2006 was $209,200 compared to $213,600 in October 2005, a 2 percent price decrease.
See also article "Baby Boom Tsunami To Propel Coastal Real Estate?" in real estate section of Amelia Island Living eMagazine.
Why is the current environment a potentially great time to buy a home in the Jacksonville metro area? See what www.Jaxhomefacts.comhas to say about local housing environment here in northeast Florida.
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