Gainesville real estate market August 2020
Gainesville FL continues to be a strong seller's market
Posted: October 05, 2020 by Coleen DeGroff
The Gainesville real estate market in August 2020 was once again a strong seller’s market for single family homes, especially for homes priced at $250,000 and below. The Gainesville and Alachua County real estate market continues to make up lost ground from the delayed spring selling season due to COVID-19.
Here’s a closer look at some of the key housing statistics from the Florida Realtors monthly report for single family home sales in Gainesville and Alachua County for August 2020.
Gainesville home sales decreased 10.3%, median sale price increased 6.4%
The amount of homes sold in Gainesville and Alachua County decreased 10.3% from August 2019 due to lack of housing inventory and the seasonal nature of the market.
Median sale price rose again in August as home buyers continued to fight over the limited amount of Gainesville homes for sale. August’s median sale price of $253,850 in Gainesville and Alachua County represented a year over year increase of 6.4%.
Gainesville home buyer activity strongest in $200,000-$249,999 price range
Gainesville home buyer activity in the $200,000-$249,999 range continued its strong performance in August, with 67 homes sold in that price range during the month. This represented a year over year increase of 15.5% from August 2019.
Gainesville luxury home sales in the $600,000-$999,999 price range jumped 120% year over year, with 11 homes sold during August.
Gainesville homes sold for the month of August decreased in every other price point.
Gainesville is a strong seller’s market
With only a 2.2 month supply of housing inventory reported in August, the Gainesville real estate market continues to be a strong seller’s market.
What is a seller’s market?
A seller’s market
is when there is a scarcity of Gainesville homes for sale to meet home buyer demand. Multiple offers and offers over asking price are not uncommon in a seller’s market because buyers often find themselves fighting over a limited amount of Gainesville houses for sale. Anything less than 5.5 months’ supply of inventory is considered a seller’s market.
Gainesville housing inventory decreased in every price point
A look at the Inventory by Current Listing Price chart (below) shows that housing inventory shortages continued throughout the month. The amount of homes available for sale in the Gainesville FL real estate market decreased in every price point in August.
Price point affects the strength of a seller’s market
The strength of a seller’s market (or a buyer’s market) varies by price point. This is because buyer demand for houses varies by price point.
A price bracket that has very little housing inventory to meet buyer demand is a stronger seller’s market than a price bracket where there are many more houses for sale than there are home buyers.
Looking at how long it takes houses in different price ranges to go under contract (Median Time to Contract by Sale Price) is also helpful in determining the strength of a seller’s market.
The chart below lays out information side by side from 3 Florida Realtors charts for Gainesville single family home sales in August 2020 – Closed Sales by Sale Price, Inventory by Current Listing Price, and Median Time to Contract by Sale Price.
Laying the information out side by side gives a snapshot of where the biggest inventory challenges were in August.
Median time to contract (how long it takes a house to go under contract from the time it’s listed) was less than 10 days in 3 price points:
Drastic shortage of inventory in those 3 price points presented home buyers with the biggest challenges finding Gainesville homes for sale during the month of August.
What does this August 2020 Gainesville real estate news mean?
Lack of inventory in this time of high buyer demand equals a Gainesville real estate market very favorable to home sellers. Homeowners who have been thinking of listing their homes for sale may want to take advantage of this very strong seller’s market.
Buying in this Gainesville seller’s market creates challenges for buyers in the form of longer search times and shorter timeframes to make decisions once buyers find a home they like. Starting their home search earlier and getting prequalified at the beginning of their home search will best position home buyers to compete in this hot Gainesville housing market. Related articles
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