Over the past couple of years, Gainesville has seen a soaring housing market. From May 2021 to May 2022 the average home price rose 36.5%! The total number of sales has remained relatively consistent, but the increased price has also led to a dramatic increase in total sales volume, hitting $155 million in the month of May alone.
As interest rates continue to rise we expect to see these trends continue but at a more moderate rate. Housing values are not likely to crash as Gainesville is still a very desirable destination for many homebuyers moving out of large metro areas like the cities of New York and California. These buyers are cashing in their equity of more expensive homes in their regions and are bringing it here to Florida, and this means that they are able to purchase much more house for their money. Because of this, they are able to pay cash and many times offer more than a local buyer who is using a conventional mortgage to finance the purchase. This trend is what has led to a huge increase in cash sales, increasing 21.9% from May 2021 to May 2022.
The increased use of cash has also afforded buyers more mobility and the ability to put in quality offers that can close quickly. While it is a slight increase from May 2021, the median time to contract of 6 days is still well below the historical average. There has not been enough new construction to meet this increased demand, and as a result existing homes have continued to see their values increase. This isn't something we expect to decrease anytime soon as increased labor and material costs continue to hinder home builders. The new construction that is most commonly occurring in Gainesville tends to be in the higher price points where builders can retain their profit margins and still make money on the deal, so low to middle priced home shoppers generally have to continue their search for existing homes.
For more information on housing trends or to find out what these numbers mean for the value of your home, give us a call today at (352) 325-1510 for a free consultation!
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