Due to declining confidence and volatile underwriting, many areas of Jacksonville are seeing a widening gap in the number of contracts that pend every month compared to the number that actually close. It is known as the 11th hour back out. In fact, nationally, this gap is widening. It is evidenced by comparing pending home sales and existing home sales throughout 2008. The Pending Home Sales Index is based on signed real estate contracts while existing home sales are based on closed transactions.
Jacksonville's Intown Neighborhoods aren't seeing this trend as much as some other areas. While there is a gap, it does not appear to be widening, indicating buyers are more qualified and feeling more confident. This could be because although value has declined, buyers still see the long term investment potential of buying closer intown. A narrowing of this gap would indicate a trend toward economic improvement.
Sorry the image is so small, if you click on it, it will enlarge it nicely.
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