The Gainesville real estate market in September 2020 outperformed September 2019 in a number of key metrics, all but wiping out the home sales gap created by the delayed spring selling season due to COVID-19. Gainesville home buyer demand continues to outstrip housing supply in nearly every price point, and home sales don't show any sign of slowing down.
Let's take a look at some of the key housing statistics from the Florida Realtors monthly report for Gainesville and Alachua County single family home sales in September 2020.
Gainesville remains a strong seller's market. Motivated home buyers looking to take advantage of low mortgage interest rates continued to drive the Gainesville real estate market during the month of September, resulting in double-digit gains both in median sale price and the amount of homes sold.
Home sales increased 30.7% over September 2019, and median sale price increased 18.8%, to $275,800.
Home buyer demand was greatest in the $300,000-$399,999 price point during the month of September. This represented a 128.1% increase in the amount of homes sold in that price point compared to September 2019.
Luxury homes in Gainesville FL experienced strong growth in September. The amount of luxury homes sold in the $600,000-$999,999 price point increased 133.3% over September 2019. Sales of luxury homes priced at $1,000,000 or more were up 500% over September 2019.
Gainesville home sales increased in a couple of other price points compared to September 2019:
With only 2.1 months of housing inventory, Gainesville remains a strong seller's market. Home buyer demand continues to outstrip the supply of homes available for sale.
Gainesville's drastic lack of housing inventory was exacerbated in September, with the reported amount of homes available for sale decreasing in every price point during September (see Inventory by Current Listing Price chart below).
The strength of a seller's market is directly related to buyer demand and the availability of homes for sale. Buyer demand for homes, and the amount of homes available for sale, is not the same across all price points.
A price point where buyer demand outstrips the amount of homes available for sale is a much stronger seller's market than a price point where there are fewer buyers and a lot of houses available for sale.
How long it takes houses to go under contract in each price point (Median Time to Contract by Sale Price) also gives insight into the strength of a seller's market.
The chart below lays out the information side by side from three Florida Realtors charts (Closed Sales by Sale Price, Inventory by Current Listing Price, and Median Time to Contract by Sale Price). This gives us a snapshot of the Gainesville real estate market in September and where the biggest inventory challenges are.
This chart illustrates the challenges buyers are facing trying to find homes to buy.
Median time to contract in September (how long it takes houses to go under contract from the time they're listed) took less than 10 days in 6 out of 10 price points. In 8 out of 10 price points it took less than 30 days.
High buyer demand and low housing inventory spell favorable market conditions for homeowners looking to sell their homes.
Home buyers looking to buy a home in this hot housing market would be well-served to be prepared with a prequalification letter to present to home sellers in order to strengthen their offer.