I am asked constantly about the state of the Gainesville real estate market and for perdictions for the coming year. To help address these important questions, I am honored to have a guest writer, Emma Crawford, featured today with an article as result of her extensive research.
According to Emma, “The post-recession economy looks to the real estate sector for indications that recovery is on the horizon. An uptick in home sales and home values provides some hope that the real estate market may have bottomed out and optimism is in order for 2012. This may be the case here in Gainesville where the last quarter of 2011 showed strong numbers for closed and pending home sales. In addition, market trends point to lower inventories and quicker closings.
The numbers tell the story. The Gainesville Florida Homes Market Report shows that closed sales rose from only 97 in October 2011 to 109 in November and 195 in December. In 2011, total homes sold for the Gainesville area reached 2,071 with 84 percent of these homes priced below $250,000. Buyers could also be swayed by rising rental rates in the area. Gainesville apartments saw an upswing of $130 a month in 2011 and this rising rate could only push those who are on the fence onto the buying side.
The average price for Gainesville residential home sales was placed at $116,000 between October and December 2011. This represents a 23 percent price drop compared to the same period in 2010. However, the last quarter was particularly encouraging in terms of how quickly home listings went to closing. In October, it took an average of 179 days to sell a home. By November, the average dropped to 159 days. In December 2011, Gainesville homes for sale were averaging only 96 days on the market. While these numbers are nowhere near as frenzied as the days when home flipping was the norm, they augur well for 2012 real estate sales.
Renewed activity in Gainesville real estate can be attributed to investors and bargain-hunters seeking to invest in Alachua County’s largest city. The presence of the University of Florida has served to prop up Gainesville’s local economy even while the rest of state suffered. Student housing has always been a bright spot for the Gainesville real estate market.
This early in 2012, inventories of resale homes have declined by 23 percent compared to December 2011. Home prices are up 33 percent to $120,000 compared to $81,000 in December. Real estate professionals expect distressed properties in Gainesville to add to inventories as homes stuck in the foreclosure fiasco enter the pipeline as short sales or foreclosures. This can only whet buyer interest as there are definitely bargains to be had in short sale or foreclosure transactions.”
Thanks Emma for these insights. We look forward to her joining us in the future with additional articles relating to the Gainesville real estate market.


