Jacksonville home prices increase along with number of foreclosures
According to a recent report released by CoreLogic, home prices in Jacksonville increased by 5.6 percent year-over year in June 2012. This was a significantly larger increase than the prices of homes nationwide, which grew by 2.5 percent from June 2011. Prospective buyers looking at houses for sale in Jacksonville should consider these statistics and temper their expectations when shopping around in the local real estate market.
"At the halfway point, 2012 is increasingly looking like the year that the residential housing market may have turned the corner," said Anand Nallathambi, the president and CEO of CoreLogic, in a news release. "While first-half gains have given way to second-half declines over the past three years, we see encouraging signs that modest price gains are supportable across the country in the second half of 2012."
This comes on the heels of a report, also released by CoreLogic, that revealed the slightly rising rates of foreclosure in May, according to the Jacksonville Business Journal. According to the report, Jacksonville's foreclosure rate of 9.04 was a 0.47 percentage point increase year-over-year. Additionally, the greater Jacksonville metro area's rate was substantially higher than the national average of 3.41 percent.
Similarly, the local delinquency rate - referring to loans that were late or behind by 90 or more days - climbed from 13.42 percent to an even 14 percent. This was a significantly higher figure than the rate of delinquency nationwide, just 6.94 percent.
As perhaps the one silver lining from the report, Jacksonville fared better in these statistics than the rest of its state. The Florida rate for foreclosure came in at 12.45 percent, while the state's delinquency rate was at 16.96 percent. Both figures were substantially higher than those in Jacksonville, suggesting that the local real estate market is comparatively stronger than its neighbors.
The high foreclosure rates could lead to an increased supply of available homes for sale in the Jacksonville real estate market. The increasing prices suggest growing demand as well. In terms of year-over-year prices in June, Florida ranked 11th nationally, with a 5.1 percent rise in single-family home prices. This figure takes into account distressed sales, including short sales and bank-owned property sales.