By JENNIFER SEXTON, Prudential Network Realty

May 13, 2006

The real estate market on the First Coast remains one of the strongest in Florida -- perhaps the state with the most explosive growth in America -- and that is despite those bubbles we see bursting in the Tampa and Miami markets. There is a growing sense that we, too, may be headed for a real estate tumble. But when you take a look at the critical statistics, you will find these fears are simply unfounded.

For instance, overall home closings in our area are up through March of this year by 62 units compared to the same date in 2005. What makes that increase even more significant is the fact that these 2006 home sales had an average sales price almost 12 percent higher than residential sales in 2005. In other words, we have more homes selling for higher prices in 2006 than last year. That is not a lagging real estate market.

Local and national experts say one of the signs of a real estate bubble is a glut of investor properties for sale, which drives prices down. We've already established that more homes have sold at higher prices in 2006 and we can compound the significance of that number with the news that through the first quarter of this year, total listings were down in each month.

If you drive through a particular neighborhood, you might be inclined to think that indeed there are many properties for sale. But that view is too simplistic. Some are older neighborhoods filled with empty nesters that are ready for young families to buy the homes and renovate them, while other neighborhoods consist of new condominium developments which appeal to baby boomers looking for a change in lifestyle as they near retirement.

The number of listings has to be considered relative to the area in which they are found. There are a few pockets in our metropolitan area that are high in listings, creating a supply-and-demand issue. But, in general, the real estate market, especially the bread-and-butter resale market which is that segment of homes priced between $200,000 and $400,000, is alive and kicking.

The Federal Reserve System has approached the real estate market with the same skeptical eye it has had toward the overall economy, raising interest rates consistently during the past few years. New Chairman Ben Bernanke has recently indicated that the trend might not continue, which would be welcome news to many. But in reality, current rates of interest remain favorable to most home buyers. Lenders are eager to open a portfolio of products that include home equity lines of credit, adjustable-rate mortgages, interest-only loans and 100 percent financing products because they know the value remains strong in Northeast Florida.

So despite the sense that our current rates are too high -- a conclusion based on recent figures that reached historic lows -- rates are really in the ballpark of where we were in the late 1990s when the boom in our area began. Now is a great time to be in the market for a home in the First Coast area -- where Florida begins.

One of the reasons why Northeast Florida is a far cry from Tampa and Miami is the number of neighborhoods that are ripe for redevelopment. Mayport is a community bursting with potential based on its location on the St. Johns River, its proximity to the Beaches and the charm that comes with its historic past. Fleming Island and Lake Asbury offer the amenities of suburban living with the idyllic charm of wide-open spaces found only in comfortable county settings.

Have you strolled the Riverwalk recently? If you have, you have been able to see the vision that Mayor John Peyton unveiled for a lively downtown with pedestrian-friendly roads and bridges lined with homes and businesses in the heart of our city. Let's not forget the uproar last year when the newly burgeoning Westside dismissed the return of the Navy to the Cecil Commerce Center because so much had been invested in those neighborhoods. The area already had transformed itself into a cohesive community so focused on what it could be, that it had little interest in returning to its past.

Jacksonville has been on the upswing for the better part of the last 15 years, but despite the unprecedented progress we have made, our best is still before us. There are more opportunities in real estate, business, education and lifestyle than ever before with the promise of more on the way. Allow yourself to see what is possible in Northeast Florida instead of worrying about what is troubling other communities and you will see we are on solid ground for many years to come.

Jennifer Sexton is a multi-million dollar producer with Prudential Network Realty's Beaches office. She can be reached by calling (904) 463-3326 or via e-mail at sextonsellshomescomcast.net.