Gainesville real estate market October 2020
Posted: December 14, 2020 by Coldwell Banker MM Parrish
The Gainesville real estate market continued its strong performance in October, completely wiping out the home sales gap created by the delayed spring selling season due to COVID-19. A drastic lack of housing inventory continues to drive the strong seller’s market in Gainesville. Here’s a look at some of the key statistics from the October 2020 Florida Realtors monthly report for Gainesville and Alachua County single family home sales.
Gainesville home sales up 24.8%; median sale price up 8.4%, to $262,500
The Gainesville real estate market experienced gains in both the amount of homes sold and median sale price for the month compared to October 2019. The number of Gainesville homes sold increased 24.8% and median sale price increased 8.4% year over year.
Highest buyer demand: $250,000-$299,999
The highest buyer demand for Gainesville homes in October was for homes priced between $250,000-$299,999, with 56 homes sold. This represented a 27.3% increase in homes sold in that price bracket compared to October 2019.
Gainesville home sales increased in several other price brackets during the month compared to October 2019:
• $300,000-$399,999 (48 homes) – 77.8% increase in homes sold
• $400,000-$599,999 (35 homes) – 59.1% increase in homes sold
• $150,000-$199,999 (36 homes) – 24.1% increase in homes sold
• $200,000-$249,999 (50 homes) – 11.1% increase in homes sold
Gainesville luxury home sales weakened in October
Gainesville luxury home sales decreased 11.1% year over year in the $600,000-$999,999 price bracket. Luxury home sales in the $1,000,000 price bracket remained unchanged compared to October 2019, with 2 homes sold.
Continued housing inventory shortage
Gainesville’s housing inventory shortage persisted, with 2 months of housing inventory reported for the month of October. This represented a 33.3% decrease in housing inventory levels compared to October 2019.
Housing inventory levels decreased in all but 2 price points compared to October 2019 (see Inventory by Current Listing Price chart below).
Gainesville homes for sale increased in two price brackets compared to last year:
• $50,000-$99,999 – 10.5% increase in homes available for sale
• $1,000,000 or more – 45% increase in homes available for sale
Gainesville remains a seller's market
Gainesville remains a seller's market due to a drastic lack of housing inventory coupled with high buyer demand in most price points.
The strength of any seller’s market varies by price point. The strongest sellers markets are at price points where home buyers are fighting over a scarce amount of homes for sale.
Looking at median time to contract (how long it takes homes to go under contract once they hit the market) can give some insight into the level of home buyer demand at various price points.
Combining the information from three Florida Realtors charts (Closed Sales by Sale Price, Inventory by Current Listing Price, and Median Time to Contract by Sale Price) gives a snapshot of the strength of the Gainesville real estate market in October. It also gives an idea of the challenges faced by buyers and sellers in different price points.
Median time to contract in October shows it took 10 days or less for houses to go under contract in 3 out of 9 price points. In 7 out of 9 price points it took less than 30 days.
October Gainesville real estate news summary
A continued lack of Gainesville homes for sale coupled with high buyer demand in most price points creates favorable market conditions for homeowners looking to sell. This fast-moving Gainesville housing market means that home buyers should be prepared with prequalification letters before starting their home search in earnest.
Difference between a buyer’s and a seller’s market Buying in a seller’s marketGainesville real estate market September 2020