February 23, 2016
Home sales in Alachua County are on the rise, but with a decrease in inventory over the past year, we maybe looking at a seller’s market.
While the total number of home closings in January 2016 were lower than any other month over the past year, the numbers were still better than in 2015, and January tends to be a slow month for real estate in general, so stats are looking promising. Last month marked the continuation of Alachua County’s six-year home sales recovery. January home sales saw a 7 percent year-over-year increase. Plus, in addition to the 7 percent increase in closed sales, there was also a 13 percent increase in new pending sales.
With a growing demand and a shrinking supply, as well as drop in foreclosure sales and an increase in traditional home sales, means Alachua is looking at a seller’s market with a median home price that is 12 percent higher than it was a year ago.
Six months of inventory is considered a balanced market, with more than six months suggesting a buyer’s market and less than six months suggesting a seller’s market. While the market a year ago was close to perfectly balanced, there has a definitely been a shift in recent months that seems to favor the sellers. Last month’s inventory indicated a 4.2 month’s supply, which is down from the 5.7 months of inventory a year ago.
Even though inventory is down and home prices are increasing, mortgage interest rates have not gone up yet. The average rate for a 30-year fixed-rate mortgage in January was 3.87 percent, down from 3.96 percent in December. Still, it is slightly concerning that home prices are rising so fast due to limited supply, particularly when salaries and wages have seen little change.
In general, the housing market has been pretty stable in Alachua, and we hope the trend continues. For more details, take a look at the article at gainesville.com.
