Carefree condo living

Jacksonville's condo sales driven by affordability

By SUE CHAMPAGNE, Special to the Times-Union

June 10, 2006

The real estate sizzle of the past few years has been tempered by a noticeable coolness throughout Florida, including the greater Jacksonville area which is among the state's larger markets.

However, the First Coast heads the list as one of the nation's strongest real estate markets, despite the slowdown. This is especially true with regard to the stability of the current condominium re-sale market which continues to hold a consistent inventory of properties.

The Florida Association of Realtors released a statement a month ago indicating that sales of existing condos statewide decreased in the first quarter of 2006 by 22 percent over the first quarter of 2005 while the median sales price increased 8 percent during that same three-month period compared to a year ago. But Jacksonville experienced quite the opposite, with a 24 percent increase in sales of existing condo homes. According to FAR, the average condo price in Jacksonville is $163,000, up from $158,700 last year.

Carmen Edwards, vice president of retail residential sales for Lifestyles Realtors, cited the following statistics: the average days on the market for a non-waterfront condo in historic Avondale/Riverside/Ortega at this time is 55 days when priced at an appropriate market value. This compares to approximately 54 days one year ago, indicating insignificant change. Condos with similar criteria in the Beaches area stay on the market an average of 53 days now as opposed to just 11 days a year ago.

A budget of $250,000 can purchase a 1,500 square foot two-bedroom, two-bath condo in the Avondale/Riverside/Ortega area while the same amount of money gets a 600 square foot condo in the Beaches area with just one bedroom and one bath, within walking distance to the beach. Larger space for that price is more apt to be found further west. The Palms at Marsh Landing, for example, offers 1,400 square feet with three bedrooms and two baths. Condos remain an affordable option that appeal to many buyers.

Secondary condo purchases attract three primary groups. Retirees and empty nesters are drawn to the low maintenance, high-luxury lifestyle. With more than 78 million people now swelling the ranks of baby boomers, there's a strong market for luxury custom housing. Today's seniors are sophisticated buyers who have more discretionary income than their predecessors and are willing to pay for the housing lifestyle they want. They like convenience and quality, value leisure and are more active than any generation before them. Research from the Senior Advantage Real Estate Council indicates that amenities are very important to buyers in this age group who prefer structural integrity and features over square footage. Many of them are already used to resort-like surroundings and want all that without the maintenance required by a single family home on a large lot.

The second group of buyers to seek condo living is a first-time home buyer. First-time home buyers rely heavily on finding the best housing their budget allows, which often is a condominium, with some priced below $100,000. That, coupled with favorable finance options, makes condo living the appropriate choice for a low-maintenance, free time-friendly lifestyle.

Second-home buyers make up the third group attracted to condos. Jacksonville beckons buyers from not only other parts of the state, but from all over the nation, as well. The Florida climate, a myriad of waterways, proximity to the ocean and beaches and the many cultural and recreational opportunities in Northeast Florida, along with a thriving economy, make Jacksonville an ideal location for vacation homes and investment properties.

All that being said, the rising cost of building material and an increasing labor dollar are forcing builders to adjust. Ken Simonson, chief economist for Associated General Contractors of America, predicts a 10 percent to 20 percent increase this year in the cost of everything from fuel to asphalt to PVC pipes because of a spike in petroleum and natural gas prices. Here in Florida, Hurricane Katrina affected the whole range of construction components from the cost of labor and fuel to key supplies manufactured in the region. These increased costs make new construction costlier and riskier, according to information found in the May 23, 2006 edition of Florida Trend Business News.

Nonetheless, the brisk conversion of apartments to condominiums during the past few years remains steady throughout Florida and Jacksonville is certainly experiencing that same trend. Driving the trend is, again, affordability.

As with any major purchase, and especially for home buyers used to single-family living, a prudent condo buyer should become educated on to the specifics of living in a multi-unit dwelling. By definition, a condominium is a combination of individual and joint ownership of a property. Single ownership applies to a unit within the condo complex, while the common areas, amenities and grounds are jointly owned by all of the unit owners. There are specific rules, regulations and bylaws that apply, and decisions are made by majority, similar to a homeowners association. There are additional fees, too, designed to cover the costs of common areas.

It makes sense that a potential condo buyer researches the entire property, as well as the individual unit being considered. Careful investigation and homework prior to purchasing a condo results in a much happier and satisfying ownership experience. With the Jacksonville condo market as favorable as it is at this time, there are many choices and being prepared ensures the right fit for the buyer.

Jessica Babcock, broker/manager for Lifestyles Realtors San Marco, offers a desirable condo choice at The Park Lane, 1846 Margaret St., which lists for $309,000. The unit overlooks Memorial Park and is the most affordable one in the building at $224 per square foot compared to others that run as high as $300 per square foot.

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