Jacksonville Foreclosures Soared 56 Percent, Cut Prices Down

by Donald Hanz on cities

Jacksonville foreclosures in the residential sector soared in 2009 and in January this year and continued its downward pressure on home prices, based on data from foreclosure tracking firms.

In 2009, a total of 26,537 households in Jacksonville, the largest city in Florida, were hit with delinquency and foreclosure notices, marking a substantial jump of 56 percent from filings in 2008 and a 178-percent jump from filings in 2007. The number represented 4.5 percent of all households in the city and put Jacksonville 26th in a ranking of metro areas with the highest paces of foreclosure.

Similarly, residential foreclosures in Florida soared by 34 percent from 2008, posting an overwhelming total of 516,711 foreclosure filings, the second-highest number posted by a state in 2009. The top number was posted by California, where 632,573 households were hit with foreclosure and default notices.

In January this year, Florida posted more than 47,000 foreclosure filings, including 6,169 banks foreclosure homes. Total filings marked a 15-percent drop from December 2009, but were still higher by 15.5 percent compared to filings in January 2009. Florida ranked fourth among states based on foreclosure rate.

Following the statewide trend, the pace of Jacksonville foreclosures also slowed in January this year by 16.6 percent compared to December 2009, but was still higher by 39 percent compared to January 2009 foreclosure activity. A total of 2,570 households in Jacksonville received foreclosure and delinquency notices in January, representing one out every 231 families in the metro area.

Compared to other metro areas in Florida, the housing market in Jacksonville in January this year was much better. While the Cape Coral and Orlando markets were among the ten metro areas with the highest foreclosure rates in the country, the Jacksonville market was further down in the ranking at 37th.

A total home sales of 834 units also occurred in Jacksonville in January, 133 units more than total sales in January last year. According to members of the Northeast Florida Association of Realtors, the sales and foreclosure figures in Jacksonville indicate that the city is still struggling and that any improvement in trends is still to be seen in the housing market performance in the second quarter.

Despite the declining pace of Jacksonville foreclosures in January, home prices were still down in January, with the median price of all existing houses sold in January falling by 14 percent to $133,990.

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