Starts and closings in the Jacksonville region were up significantly in the first-quarter from last quarter and from a year ago. In the Jacksonville market 1,552 single-family units were started in the first quarter of 2014, an increase of 27.7% from 1Q13. The annual starts rate compared to last year increased by 32.6% to 5,577 annual starts.
Single-family quarterly closings totaled 1,510 units, 51.2% higher than the 999 closings in the same quarter last year. The annual closings rate (past 4 quarters) totaled 5,179 units, which is 41.3% above the rate of 3,666 units per year recorded a year ago.
“The Jacksonville area’s new housing market demonstrated strong growth in the first quarter of 2014, after taking a slight breather in the 4th quarter of 2013," said Anthony Crocco, Regional Director of Metrostudy’s Jacksonville/Orlando region. “The fourth-quarter slowdown was due more to seasonality than market conditions, and we expect construction activity and employment to continue to grow thru the next two quarters.”
This quarter, 382 lots were delivered to the Jacksonville market, a 61.4% decline from 990 lots delivered in the same quarter last year. Vacant developed lot inventory stands at 15,407 lots, a decrease of 17.3% compared to 18,636 lots last year. Based upon the annual starts rate, this lot inventory represents 33.2 months of supply, a decrease of 20.0 months from last year.
Resale closings were down 1.8% YOY in March, while inventory levels are down 2.6%. The median sales price for resale homes is up 12.4% from March 2013, which is expected to help push new home pricing up over the next year.
“With continued strong closing activity, the new home market looks to be in an excellent position to continue strong growth thru this buying season,” says Crocco. “With pricing growth occurring in the best submarkets, we would expect growth to expand into the further out submarkets over the coming quarters, although that has not really begun in Jacksonville like it has in markets further south.”
For information contact: Anthony Crocco @ 407-875-9090 x820
Metrostudy, a Hanley Wood company, is the leading provider of primary and secondary market information to the housing and related industries nationwide. Established in 1975 in Houston, Metrostudy provides research, data, analytics and consulting services that help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day. www.metrostudy.com