In High Demand

If you build it, will they come?

Putnam County officials are banking on potential residential growth. And based on data from 2020, there is a strong demand for housing locally.

Median prices for Putnam County homes increased 106.8% from 2016 to 2020, according to an annual report from the Northeast Florida Association of Realtors. The median price was $65,000 in 2016. It climbed to $134,400 in 2020, up 16.9% from 2019.

“It’s a seller’s market because inventory is low,” said Leota Wilkinson, chairwoman of NEFAR’s Putnam Council and a local real estate agent. “We’ve definitely seen an appreciation in value the last couple of years.

“Housing prices are up and we’re selling them a lot quicker. The inventory (of homes for sale) is lower than it’s been in the past five years. It’s definitely a much better market than what we have seen in the past.”

Preliminary data from Putnam County Property Appraiser Tim Parker supports the continued rise in housing prices.

The average sales price for a single-family residence in Putnam County grew 14% in 2020 compared to 2019 – rising to $189,637 from $165,994. The median price for a single-family residence was up 12% to $162,000, compared to $144,200 in 2019. The county numbers varied from NEFAR data because all sales may not have passed through multiple listing service reports, for example, homes for sale by owner.

Total sales of single-family residences grew 8% in 2020 from the previous year, up to 735 from 682 in 2019.

Additionally, the median sales price for a mobile home increased 21% to $63,000, according to the Property Appraiser’s Office. Total mobile home sales increased 3% to 588.

 “With our preliminary numbers, the median sales price and the average sales price have increased 12% and 14%, respectively,” Parker said. “That’s a positive thing for us in Putnam County.

“The interesting change is the 106.8% increase (in median prices) since 2016 and how rapidly our values have increased. People are discovering Putnam County.”

Parker said for people considering buying homes in nearby St. Johns and Clay counties, they will likely at least consider Putnam County if price is their primary concern.

“Besides the price and getting more for your money, there are beautiful places to locate here in Putnam County as well as the positive aspects the county can offer,” Parker said. “We’re friendly, it’s beautiful and it’s a great place to live. People are discovering that.”

Housing prices and sales increased despite the COVID-19 pandemic and its economic impact in 2020. Business and community leaders say rural counties such as Putnam are also becoming more attractive than larger cities as more people work remotely.  

Parker said his office will study 2020 numbers in more detail to see what drove price increases, whether it’s land value, materials cost or improvement values.

“The cost of lumber is up and other materials are up,” Parker said. “It’s the principal substitution scenario of what could I purchase versus what it would cost to build a new home.”

Another factor Parker and Wilkinson cite is the shortage of available housing in Putnam and new construction.

“We just don’t have a lot of spec homes here,” Parker said. “Developers will build spec homes in other counties. We don’t have cookie-cutter subdivisions throwing up homes. That’s what our difference is here versus other areas.”

Wilkinson agreed the shortage of housing is a factor in driving up prices.

“That is a part of it,” Wilkinson said. “Supply and demand drives everything and it certainly does in the real estate market. Less inventory drives prices up.

“We just don’t have a lot of builders here. When you call a builder, they’re six months to a year out. We don’t have new subdivisions going in.”

Wilkinson did point to one subdivision that is experiencing renewed interest – Nobles Crossing near Francis.

The gated community was started in the early 2000s before the Great Recession that began in 2007 battered the housing market nationwide. Lots are marked along paved roads and cul-de-sacs in the subdivision, which is doted by streetlamps.

A few houses have been built and another is currently under construction. New home prices on 1-plus-acre homesites start around $300,000, according to Erin Fortner, a real estate agent with Coldwell Banker Ben Bates Inc. Twenty-two of 27 lots in the subdivision are available.

Fortner said more people are considering living in Putnam County.

“We do have a fair amount of people coming from St. Johns County who can’t afford there anymore,” Fortner said. “Or they can get more land with what they buy here.

“Recently, we’ve had a lot of influx from out-of-state buyers looking.”

Fortner said the county could use more new housing developments.

“Somebody’s just got to put their neck out there and take the risk of putting in all the infrastructure and doing it,” Fortner said. “There are no 1-acre lot subdivisions in St. Augustine that are anywhere near affordable.”

Wilkinson expects Putnam will continue to attract new residents as more housing becomes available. She said the new bypass under construction in Green Cove Springs will encourage growth in the county.

“It’s going to make a difference for us, maybe not this year, but I think growth will spread down to us,” Wilkinson said. “We’ve certainly seen the market improving in the area and we see that as a positive. Housing is going up price-wise and the whole market should continue to improve for the county.

“Putnam County is sort of the hole in the donut with everything people might want within an hour’s drive. You can buy real estate here at a fairly good price and still get that hometown feeling.”

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