Jacksonville Housing Market Report: Inventory Levels High, Builder Profits Low

The Jacksonville housing market is going through a slow period at the moment. The lack of movement among new and existing properties is having a trickle down effect on related industires.

For example, third quarter earnings for the St. Joe Company fell 83 percent, as the developer pulled out of the home building business in Florida altogether. St. Joe earned $6 million in the third quarter, or 8 cents per share, down from the $36.1 million, or 47 cents per share, it earned in the third quarter of last year.

Chairman and CEO Peter S. Rummell said the company does not expect the slowdown in the housing market to reverse itself any time soon. Florida mortgage applications aren’t exactly being sent in on a regular basis these days.

“The inventory of new and existing homes in the marketplace remains high,” Rummell said. “We continue to believe it could take until 2008 before a supply-demand balance begins to return.”

Earnings in the commercial real estate segment fell by almost half to $7.8 million, while residential real estate segment earnings went from $30.5 million in the third quarter last year to a loss of $4.4 million in the third quarter of 2006.

The company expects earnings for 2006 to be at the lower end of the previously stated range of 70 cents to $1.05. Chief Financial Officer Anthony M. Corriggio said St. Joe will stop making earnings estimates beginning in 2007.

It’s difficult to say when these sorts of figures will turn around. A recent report states we should expect Florida mortgage loans to continue to slide through 2007.