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Jacksonville Bank Owned Homes Raised Housing Affordability

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By : John Cutts    99 or more times read
Jacksonville bank owned homes pushed up housing affordability in the area in 2009, according to a study made by the Center for Housing Policy. The ranking of the metro area rose to 119th among 208 markets studied based on home affordability in 2009.

The home sales price median in Jacksonville dropped to $140,000 in 2009, down by 15.2 percent from the $165,000 median in 2008. The decline put Jacksonville 98th in the middle of a list of markets from the most to the least expensive.

The study focused on housing costs in over 200 metro areas and concluded that home ownership was still not possible for many workers in many metro areas despite sharp declines in house prices and in mortgage rates.

The most expensive housing market last year was San Francisco, with a sales price median of $625,000. The city of San Jose was next with its median of $465,000. Six of the ten most costly markets were located in California.

The least expensive housing market was Wheeling in West Virginia, where the median was $72,000. Next were Battle Creek in Michigan and Youngstown, Ohio where the median sales prices were $75,000 and $76,000, respectively.

The number of Jacksonville bank owned homes and delinquent homes soared by 56 percent in 2009 to a total of 26,537 units, equivalent to more than 4.5 percent of all residential units in the metro area.

Jacksonville posted the 27th highest percentage of foreclosures in 2009 and accounted for 5.14 percent of the 516,711 pre-foreclosures and bank owned homes in Florida in 2009.

Both in January and in February this year, the number of foreclosures bank owned in the state exceeded 6,000 units, with 6,169 units repossessed in January and 6,992 units taken back by lenders in February. Bank REOs accounted for 13.1 percent of total foreclosure postings in January while they accounted for 12.94 in February.

The continued delinquencies and foreclosures in Jacksonville and in the entire state of Florida have been pushing down prices and making homes affordable to more people in Florida.

In February, the sales price median for homes in Jacksonville fell further to hit $135,000, down by 14 percent from February 2009 and also down by $5,000 from the median in 2009, based on figures from the Northeast Florida Association of Realtors.

Because of sharply improved housing affordability, sales of Jacksonville bank owned homes and pre-foreclosures comprised 50 percent of total homes sales in Jacksonville in February.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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