The Gainesville real estate update for 3Q 2023 reveals that despite slower sales and rising inventory levels, Alachua County home and condo prices continued to rise.
This update gives a quick look at Alachua County’s home and condo sales from January through September 2023, whether Gainesville was a buyer’s or a seller’s market, and how this latest real estate market news for the third quarter of 2023 affects Gainesville home and condo buyers and sellers.
Not up for reading the whole thing? Check out the short real estate market update video below that goes over all the highlights.
Gainesville Real Estate Market Video Update for January-September 2023
Alachua County Home Sales
Alachua County Homes: Market snapshot for January-September 2023
Despite an increase in housing inventory levels, Gainesville home prices continued to rise in the third quarter of 2023.
Median sale price for Gainesville homes in the third quarter of 2023 was $360,000, a 2.9% increase from 3Q 2022. The amount of Gainesville homes for sale was up 2.4% from 3Q 2022.
Home sales were down 15.7% from 3Q 2022 and it typically took 20 days for homes to go under contract, up from 13 days last year.
With home prices and mortgage interest rates continuing to rise, many home buyers feel locked out of the market as a rise in interest rates means home buyers are getting far less house for their money.
Even in the face of lower home buyer demand, Gainesville was a seller’s market during the third quarter of 2023, reporting only 2.6 months supply of inventory.
A seller’s market (meaning low housing supply to meet buyer demand) is when there is less than 6 months supply of inventory.
So even with Alachua County housing inventory levels rising, 2.6 months supply of inventory is still a strong seller’s market.
Whether Gainesville home prices keep rising depends in large part on whether buyer demand keeps up with increasing inventory levels.
Best Selling Gainesville Neighborhoods
Here’s a look at the top 10 best selling Gainesville neighborhoods during the third quarter of 2023 (January through September) based on the number of homes sold:
- Haile Plantation – Gainesville
- Oakmont – Gainesville
- Briarwood – Alachua
- Grand Oaks – Gainesville
- Avalon Woods – Newberry
- Town of Tioga – Newberry
- Arbor Greens – Newberry
- Oaks Preserve – Gainesville
- LongLeaf – Gainesville
- Turkey Creek – Alachua
The majority of best selling neighborhoods during the third quarter of 2023 offered new construction homes for sale.
Alachua County home sales breakdown
No matter what market you’re in, the strength of a real estate market varies by price point. When there are a lot of buyers shopping in a price point and there’s a limited amount of homes for sale to meet demand, that price point is more favorable to home sellers than one where there are fewer buyers and a larger amount of homes available for sale.
Looking at Alachua County home sales side by side with homes available for sale broken down by price point gives us an idea of the most popular price ranges for home sales during the third quarter – and also highlights the price points that faced the greatest inventory challenges in meeting buyer demand.
Alachua County homes priced between $300,000-$399,999 were the biggest seller, with 214 homes sold during the third quarter; closely followed by homes priced between $400,000-$599,999, with 196 homes sold.
Gainesville homes priced below $250,000 remained in short supply during the third quarter, posing the greatest challenges for buyers looking to purchase homes in those price points.
Comparing home sales to housing inventory during the third quarter shows that buyer demand was softest for homes priced at $600,000 on up.
Alachua County Condo Sales
Alachua County Condos: Market snapshot for January-September 2023
Alachua County condo sales from January to September 2023 were down 10.1% from last year, and there was a 27.3% increase in condo inventory.
Despite fewer condo sales and an increase in inventory, Gainesville condo prices continued to climb.
Median sale price of Alachua County condos during the third quarter was $195,000, an 11.4% increase from last year when the median sale price was $175,000.
It typically took 14 days for Gainesville condos to go under contract, up from 9 days last year.
Even with softer buyer demand, Gainesville was still a seller’s market for condos, reporting only 2.2 months supply of inventory, compared to 1.2 months of inventory last year, an 83.3% increase.
Considering that a seller’s market is when there is less than 6 months of inventory (meaning low supply to meet buyer demand), 2.2 months supply of inventory is still a strong seller’s market.
How buyer demand responds to increasing inventory levels will be a determining factor in whether condo prices will keep rising.
Alachua County condo sales breakdown
Just like with single family homes, the strength of a real estate market for condos varies by price point. When there are a lot of buyers searching for condos in a price point and there’s a limited amount of condos for sale, that price point is more favorable for condo sellers than one where there are fewer buyers and a larger amount of condos available for sale.
Looking at Alachua County condo sales side by side with condos available for sale broken down by price point gives us an idea of the strongest selling price ranges for condo sales during the third quarter – and also highlights the price points that faced the greatest inventory challenges in meeting buyer demand.
Alachua County condos priced between $150,000-$199,999 were the biggest seller, with 63 condos sold during the third quarter; closely followed by condos priced between $200,000-$249,999, with 45 condos sold.
During the third quarter, buyer demand was strongest for condos priced under $400,000. Alachua County condo inventory continued to remain in short supply in nearly every price point.
Gainesville real estate market 3Q 2023: Key takeaways
Here’s a few key takeaways about Gainesville’s real estate market during the third quarter of 2023:
- Despite home and condo sales being lower than last year, sale prices continued to rise.
- Even with inventory levels rising, Alachua County was a strong seller’s market. There is still a severe lack of home and condo inventory in a majority of price points.
- How buyer demand responds to increasing inventory levels will be a key determinant in whether and how much home and condo prices will continue to rise.
The figures presented in this Gainesville real estate update for 3Q 2023 are a snapshot in time. The market is constantly changing. Gainesville home and condo buyers and sellers should consult with their Realtors for the most up to date information to best help them navigate Gainesville Florida’s real estate market.