Gainesville Housing Market Bucks Florida Mortgage Loan Trend: Sales, Prices Rise

Florida Home Loan
Friday, August 25th, 2006

 

As reports coming flying in from around the state, most counties in Florida experienced relatively stable decreases/increases in home prices and sales last month.

Except Gainesville. While most metro areas in exhibited single-digit decreases in median sales prices in the year-to-year comparison, Gainesville homes actually rose 18 percent. This fact didn’t dissuade buyers, however. They still applied for Florida home mortgage loans in droves, considering the fact that Alachua County showed only a 23 percent decline in sales volume, the fifth lowest of the 20 metropolitan statistical areas in the FAR report.

Inside the Gainesville housing market

There were 299 homes sold through Multiple Listing Services in Alachua County, for a median price of $219,800 last month. The list-to-sell ratio (asking price vs. selling price) was 98 percent, meaning all parties involved were satisfied with the transactions.

The Ocala market also saw a total deviation from the rest of the state - only a 1 percent decline in sales, the lowest in Florida, along with a 20 percent increase in median sales prices, the highest in the state in the year-to-year comparison. The 525 single-family homes sold for a median price of $177,200 last month.

So, what explains this balance? Does anything anything account for the proliferation of Florida home loans, despite prices sky-rocketing? Wilbur Van Wyck, president of the Ocala/Marion County Association of Realtors and broker-owner of Coldwell Banker Riverland Realty said:

“In our area, the median sales price remains solid and homes are continuing to sell. The market is leveling to a more even playing field between buyers and sellers.”

The local condo market

Statewide sales of existing condos also decreased in July, with a total of 4,260 condos sold, compared to 6,739 in July 2005, a 37 percent decrease. The statewide median sales price for condos last month was $210,200; a year ago, it was $211,900. Pretty similar. Are you looking to use a Florida home loan on a condo?

Think about Gainesville in that case. The condo market here was quite different from the statewide average. There were 215 condos sold last month, a 54 percent increase over July 2005. Prices for Gainesville condos increased 10 percent - to $152,100 - with other areas experiencing declines as deep as 27 percent or increases as high as 36 percent.

Thomas McIntosh, president of ERA Trend Realty in Gainesville, said the seemingly steep rise in the median price of single-family homes could be attributed to more sales in higher-price homes - there were 176 homes closing for more than $200,000 last month - and “a real inventory problem with affordable homes. There’s not enough to buy.”

So all is not perfect. Lower-income families may still need to consider Florida home mortgage financing in the area, but those who can afford more expensive houses are evidently doing so around the city.

For more information contact...

Matt Thomas
(352) 494-0194
MattThomas@BosshardtRealty.com

 

Return