Gainesville FL Real Estate Blog

10 Predictions For 2009 Gainesville Real Estate
2009 is likely to be a year of continuing adjustment to a changing real estate marketplace. The following predictions from HGTV’s FrontDoor.com are relevant to the Gainesville real estate market.

• Sellers will continue to face falling home values in the new year because they’ll be competing with banks and builders who are slashing prices to sell off the still-huge inventory of foreclosures and new homes.

• The Obama administration will act on its plan to crack down on abusive lending practices.

• Mortgage holders in danger of losing their homes will receive more assistance from a variety of programs since the Senate’s Joint Economic Committee has predicted two million foreclosures in 2009.

• Banks’ restructuring should bring increasing calm, making loan modifications and short sales easier to obtain. Eventually this will lead to a decrease in the number of bank-owned properties on the market.

• Mortgage applications will continue to receive a comprehensive review, requiring borrowers to provide extensive income and debt documentation. Those with the best credit will get the best rates.

• The foreclosure crisis has created wiser consumers, with a deeper understanding of real estate, mortgages, and credit enabling better decision-making going forward.

• Green is good with increasing numbers of buyers opting for smaller homes that are within walking distance of school and work.

• Buyers and sellers will be more and more tech savvy, relying on tools like video, webcasts, and mobile search. Consumers and practitioners will benefit from being ahead of the curve.

• Prices will be low as will interest rates, creating great buying opportunities, and likely, inspiring reluctant buyers to make their move.

• The recession will end and buyers will regain confidence in the market.

Learn more about Gaines ville real estate by visiting Gator Homes.com.

Search all Gainesville real estate and homes for sale.

Pros & Cons Of Owning Gainesville Rental Property  

Investing in Gainesville real estate and owning rental property sounds glamorous, but it isn’t for everyone.

Be sure you know what you’re getting into and understand what you are getting into before signing on the dotted line. Here are some questions you should ask yourself before purchasing an investment property:

• Where will the down payment come from for this property?
• Do you have cash reserves so you handle periods of vacancy, i.e. no income?
• How about reserves for unexpected repairs and other expenses?
• Do you need property to rent immediately or do you have time and money for a “fixer-upper”?
• Will you make needed renovations and repairs or hire someone else for the job?
• What type of property do you want: single family, apartment, duplex, condominium, or vacation property?

Thinking it through ahead of time assures that you won’t get caught making a rash decision you will regret later.

If you decide now is the time to take advantage of lower market prices and invest in Ginesville real estate and rental property, visit GatorHomes.com.

Search all Gainesville real estate and homes for sale.

Gainesville Real Estate: Buying Condo vs Single Family

Condominiums and townhouses offer an affordable option to single-family homes when buying Gainesville real estate, and they’re ideal for those who appreciate a maintenance-free lifestyle. But before you buy, make sure you do your legwork. These are some of the important elements to consider:

• Storage. Some condos have storage lockers, but usually there are no attics or basements to hold extra belongings.
  
• Outdoor space. Yards and outdoor areas are usually smaller in condos, so if you like to garden or entertain outdoors, this may not be a good fit. However, if you dread yard work, this may be the perfect option for you.
  
• Amenities. Many condo properties have swimming pools, fitness centers, and other facilities that would be very expensive in a single-family home.
  
• Maintenance. Many condos have onsite maintenance personnel to care for common areas, do repairs in your unit, and let in workers when you’re not home — good news if you like to travel.
  
• Security. Keyed entries and even doormen are common in many condos. You’re also closer to other people in case of an emergency.
  
• Reserve funds and association fees. Although fees generally help pay for amenities and provide savings for future repairs, you will have to pay the fees decided by the condo board, whether or not you’re interested in the amenity.
  
• Resale. The ease of selling your unit may be dependent on what else is for sale in your building, since units are usually fairly similar.
  
• Condo rules. Although you have a vote, the rules of the condo association can affect your ability to use your property. For example, some condos prohibit home-based businesses. Others prohibit pets, or don’t allow owners to rent out their units. Read the covenants, restrictions, and bylaws of the condo carefully before you make an offer.
  
• Neighbors. You’re much closer to your neighbors in a condo or town home. If possible, try to meet your closest prospective neighbors.  

Thinking of buying Gainesville real estate? Visit GatorHomes.com or give me a call. I’m glad to help!

Search all Gainesville real estate and homes for sale.

Why It’s A Good Time To Buy Gainesville Real Estate

The Gainesville housing market has never been better for many potential buyers. In fact, more often than not, it is less expensive to own your own home rather than rent. 

The National Low Income Housing Coalition reports that in 57 out of the 100 most populated metro areas, renting a three-bedroom home is more expensive than monthly costs on a six percent mortgage for a typical low-priced house in the same area. 

With all the news these days concerning the economic crunch and these tumultuous economic times, you might think I’m crazy saying it is a good time to buy Gainesville real estate. Of course, buyers with strong credit are best positioned to take advantage of today’s opportunities. A high credit score will yield a lower interest rate and increase the likelihood that a loan application will be approved. 

For example, a buyer with a 6 percent mortgage will pay a third less per month than a buyer who has a loan at 8 percent. This difference can be hundreds of dollars per month. 

FHA loans, VA loans and government backed first-time buyer loans are all available to qualified buyers. With the current low interest rates and affordable housing prices, it is a great time to buy your Gainesville home. 

It is also a time to keep in mind that buying a home is a long term investment…and an investment you and your family can enjoy for many years!

Learn more about buying Gainesville real estate by visiting GatorHomes.com. 

Search all Gainesville real estate and homes for sale.

Existing-home sales rose from the first quarter in 13 states, largely from buyers responding to discounted home prices, according to the latest quarterly survey by the National Association of Realtors®. Nearly one-quarter of metropolitan areas showed rising home prices in the second quarter from a year ago, with greatly mixed conditions continuing around the country.

NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said foreclosures are distorting the price data. “In many areas with large concentrations of foreclosure sales, homes are being purchased below replacement cost values,” Gaylord said. “Many buyers with long-term expectations are getting exceptional value in the current market. Once the inventory is drawn down, price pressure will return because the costs of construction are rising - today’s buyers are very well positioned to build wealth over time.” National Association of Realtors®.

Let’s take a look at the sales statistics for July 2008 to see how the Gainsville FL real estate market looks: 
 
The Gainesville FL area single family home sales experienced a 14% decline in new listings in July 2008, when compared against July 2007.  Pending listings were down 19% and sold listings were also down, by 39%.  The average sales price dropped 9% to $212,683 while market times increased by 22 days.

The Gainesville FL area Condo/TH market saw a more dramatic 63% drop in pending sales in July 2008, compared to July 2007.  Likewise, new listings were down 54% and sold listings were down by 31% this July.  The average sales price, meanwhile remained fairly consistant, while the average market times increased by 25 days. 

Again, as Gaylord said, real estate prices are declining in some areas, even within the same city. 

For the latest Gainesville FL real estate market conditions in your area, please call me at 888-424-8841 or visit MyGatorCondo.com.

Gainesville Second-home Sellers Pay For Tax Credits

You have probably heard, last week President signed into law the Housing Rescue and Foreclosure Prevention Act. This is the most comprehensive housing bill to be enacted in over a decade. The bill is designed to help more buyers of Gainesville real estate realize their dreams, as well as, boast the struggling housing and mortgage markets.

One of the biggest benefits, and probably one of the most talked about provisions in this legislation, is the $7,500 tax credit to first time home buyers. Tax breaks are all well and good, but they have to be paid for somehow. While first time home buyers are getting a break, second home sellers will be paying for the $15.1 million dollars in tax cuts.

Up until the new legislation went into effect last week, homeowners could exclude up to $250,000 taxable profit on the sale of their home if they’re single taxpayers and $500,000 if married filing joint returns. The catch being, they had to live the in house as their primary residence for two of the five years before it is sold.

(more…)

You may have heard buzz around the term “universal design” in recent years, but do you know what it is or how it affects the Gainesville real estate and construction markets? 

According to Lowes.com, universal design is the creation of products and environments meant to be usable by all people, to the greatest extent possible, without the need for adaptation or specialization. The intent is to simplify life for everyone by making products, communications and the built environment more usable by as many people as possible at little or no extra cost. Universal Design benefits people of all ages and abilities. 

Think this is some “far out” theory just now working its way into the “modern” world?  Think again:  if you’ve ever walked through an automatic door, you’ve experienced a version of Universal Design.   Likewise, a ramp or curb cut is just as welcome to someone with a baby stroller as it is to someone in a wheelchair.

Universal Design has become a hot topic in the Gainesville real estate market as more residents are retiring and making the decision to “age in place,” as opposed to moving into assisted living facilities.  As we discussed previously, this aging generation is already driving the design of new products for the home that will affect real estate in the future.  Even if you are not part of the “mature” population, however, Universal Design should be important to you.  If you are planning to build or renovate, keep in mind the principles of Universal Design and know that it’s more cost effective to add many Universal Design features during the planning stage. There are a number of design features that can be built for little or no cost. Their addition at the beginning saves the need for future retrofits.

Some examples of Universal Design features include:

Lighting
Additional task lighting is needed for “older” eyes.
Added lighting is also advised in areas to increase safety, such as for stairs.
Kitchens
Push/pull lever faucets for those with limited hand strength or dexterity.
Side-by-side refrigerators.
Doors
Leverset entry or interior door hardware.
Wide swing hinges allow use of the entire doorway.
Baths
Roll-in showers.
Add reinforcement into the wall substructure now in the event the addition of grab bars is needed later.

To learn more about trends in the Gainesville real estate market, please call me at 888-424-8841 or visit GatorHomes.com. 

Search all Gainesville real estate and homes for sale.

If you are in the market for Gainesville FL real estate, you probably have a good idea of the general range you can expect to spend on a home.  So you might be surprised when a great-looking home shows up on the MLS with what seems like a shockingly low price tag attached.  The extra-low price seems too good to be true and – most of the time – it is. 

It is likely that the price you are seeing does not represent the actual asking price of the property; rather, in most cases it is likely a property that is in “pre-foreclosure” and the amount listed actually represents the balance of the defaulted loan, or the amount the current owner is in arrears.  Below is an excerpt from an article I found at Inman News that does a great job explaining how these properties end up on MLS search engines, and what you can do to spot them:

  (more…)

A modest gain in the level of Gainsville real estate sales is possible over the next couple months, and an improvement is forecast for the second half of this year as more buyers are able to access affordable mortgages, according to the latest forecast by the National Association of Realtors^®. 

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in April, rose 6.3 percent to 88.2 from a reading of 83.0 in March. It’s the highest index since last October, but remains 13.1 percent lower than April 2007 when it stood at 101.5.

Lawrence Yun, NAR chief economist, said pending sales contracts have picked up notably in areas undergoing significant price drops. “Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it’s unclear if they are investors or owner-occupants,” he said. 

Let’s take a look at the May sales statistics to see how things are looking in the Gainsville real estate market: 

(more…)