Contained herein is information on the Real Estate Market in Gainesville, FL. The statistics provided have been collected from a number of different sources. For more information, feel free to Contact Us anytime to discuss. |
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Price Activity |
Gainesville |
U.S. |
Local Trend |
Current Median Home Price (2010 Q3) |
$154,600 |
$177,100 |
Prices are down compared to a year earlier and continue to weaken. The current market conditions continue to prove to be a great time to buy. |
1-year (4-quarter) Appreciation (2010 Q3) |
-10.0% |
-0.6% |
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3-year (12-quarter) Appreciation (2010 Q3) |
-25.2% |
-19.9% |
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3-year (12-quarter) Housing Equity Gain* |
-$52,000 |
-$44,000 |
Real estate remains a long-term investment: those who have owned for more than 3 years have seen the equity in their home grow. |
7-year (28 quarters) Housing Equity Gain* |
$7,700 |
-$6,000 |
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9-year (36 quarters) Housing Equity Gain* |
$37,,000 |
$21,500 |
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*Note: Equity gain reflects price appreciation only |
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Conforming Loan Limit** |
$417,000 |
$729,250 |
Most buyers in this market have access to government-backed financing |
FHA Loan Limit |
$271,050 |
$417,000 |
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Local Median to Conforming Limit Ratio |
37% |
not comparable |
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**Note: the 2009 loan limits for FHA and the GSEs were extended through 2010. |
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2010 - Q4 (View Entire Market Report)
2010 - Q3 (View Entire Market Report)
2010 - Q2 (View Entire Market Report)
Our quarterly survey, conducted by the Bergstrom Center for Real Estate Studies, Warrington College of Business Administration, University of Florida is in its eighteenth fielding. The total number of participants, at 275, is the most extensive survey of Florida professional real estate analysts and investors conducted on an ongoing basis. It includes respondents representing thirteen urban regions of the state and up to fifteen property types.
Respondents to the 4th quarter survey continued their gradual increase in optimism for the market as a number of the uncertainties that hampered prior surveys were relieved. The defeat of Amendment 4 in Florida and the completion of the elections provide a clear picture of the future for market participants. One respondent commented "All conditions for improved business function have improved, most important a greater certainty of what the operating rules, tax structures, and regulations will be in the coming 2-3 years, enabling decision makers to proceed with less concern for an abrupt change in policy." This is a sentiment shared by many of our respondents.
However, economic factors continue to weight on respondents' minds as well. The high unemployment rate in the state continues reaching 12% in December, unchanged from November. Florida remains one of the worst states in the country in unemployment which continues to have an adverse impact on real estate recovery. Additionally, fears over federal, state and local budget issues continue to be expressed by the respondents. Local revenues continue to decline as property values decline placing a tremendous burden on local budgets requiring tough decisions on services and infrastructure maintenance or looking at tax increases to cover any short fall. The state welcomed a new governor, after the November election, who has promised to make Florida a more business friendly state. If he can succeed on his goals, respondents believe it will have a positive impact on the real estate market. Any help in attracting new business to move or form in the state will no doubt have a positive impact on job growth. On a national level, the change in congress was perceived to be a positive step forward by respondents. Time will tell if the new congress will curtail the spending habits of the federal government and stop the assault on the business community to allow for job growth.
Despite these concerns, the survey results indicate that respondents expect better fundamentals over the next year. Expectations for occupancy and rents increased across every asset class. Additionally, the investment outlook increased in a majority of asset classes and the state wide outlook reached a survey high. Private capital continues to be plentiful searching for the few good products on the market. In fact, some respondents are concerned about the implications of the cap rate compression currently occurring for trophy properties in various asset classes. Regardless, this bifurcation of the market is projected to continue as banks remain slow to release the quality Class A assets to the market. Poorly located assets and lower class assets will not benefit from the private capital and continue to see higher occupancy and lower rents for the foreseeable future.
Overall the market appears to be improving and will continue to improve at a slow pace over the next year. As one respondent noted, "Time, time, time…market corrections take time."
The outlook for occupancy and rental rates increased across all asset classes this quarter.
Cap rates and yields are stabilizing or decreasing across all property types. Expectations are for continued stabilization at current levels over the next year.
The outlook for investment improved across most property types. The overall outlook for Florida improved to its highest level since survey inception.
Respondents' outlook for capital availability continues to improve with a steady rise in the expectation for capital available for development.
Respondents' outlook on their own business continues it positive trend, reaching a similar level as the first quarter of 2008.
Job growth continues to be the main concern of most respondents.
Cap rates in Gainesville-Ocala are, on average, higher (0.22 percentage points) than that of the state, and range from 7.5% (Apartments) to 10.1% (Condo Conversion and Strip Centers).
Cap rates decreased for most property types over the last quarter, with the largest changes occurring inWarehouse (-0.82% change) and Retail Large (-0.44% change).
Cap rates are expected to stabilize over the next quarter for all property types with the exception of Office: Class A and Retail Large which are expected to decrease.
Required yields for Gainesville-Ocala are, on average, lower than that of the state, 12.62% compared to 13.46% statewide.
Required yields are highest for Condo Conversions at 20.6% and lowest for Neighborhood Centers at 10.1%.
Required yields increased over the past quarter for most property types. The largest increases occurred in Condo Conversions (+3.83% change) and Free Standing Retail (+1.94% change).
The investment outlook is positive over all of the available property types in this region.
The outlook for Land Development is neutral to negative across most land classifications.
Future occupancy expectations are neutral to positive across available property types. The strongest indications of future occupancy increases occur in Condo Conversion, Office: Class A and Retail Large.
Rental rates are expected to lag inflation across the majority of available property types over the next quarter with the exception of Condo Conversion where rates are expected to increase faster than inflation.
Future absorption rates are expected to remain neutral for Single Family Development and Condominium Development.
Future price increases are expected to occur at a rate slower than inflation for both Single Family and Condominium Development.
Online resources: Survey of Emerging Market Conditions by the University of Florida (Begstrom Center for Real Estate Studies) http://warrington.ufl.edu/fire/realestate/cres/survey.asp.
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Feb '10 (
