Lisa Barton

As you’ve probably read, first time home buyers are driving the real estate market nationally, as well as here in Ponte Vedra Beach. I recently worked with first time home buyers who purchased a great 3 bedroom 2 bath house in Sandy Oaks, a small neighborhood here in Ponte Vedra. The house was originally listed for $349,000 and sold in April 2009 for $209,900. The buyers were able to secure a low interest rate and at this price purchasing a home was cheaper than renting.

Houses are more affordable than they have been in quite some time.  In fact, the Housing Affordability Index in Jacksonville was 163 in March, which represents an improvement of 40.6% over the past two years.  What this means is that the median family income in our area is 163% of the necessary income to qualify for an average priced home. In fact, the Affordability Index is better now than it’s been since Jan ‘03.

Local trends are also reflected in national numbers. First time home buyers accounted for 53%  of all properties sold during March 2009. The National Association of Realtors expects first time home buyers to account for the majority of home sales through the remainder of 2009. One spokesperson estimats that an additional 300,000 first time buyers will enter the market this year as a result of the $8,000 tax credit. This tax credit is also available to buyers who have not owned a home in the last 3 years or more. Exciting news!