Gainesville's Housing Market is Insulated from Downturn
by Zana Holley Dupee, Esq.
Florida Commercial Attorney
Bogin, Munns & Munns, P.A.
(352) 332-7688
Why is Gainesville's housing market insulated from the downturn hitting the rest of Florida and the US?
Home prices next to the University of Florida campus in Gainesville, Florida have been strong despite the state's real estate downturn. Plus, next year, Shands at UF is opening a new Cancer Hospital which is a $388-million, 500000-square-foot facility. This facility will bring a significant number of high paying medical jobs into the market buoying Gainesville's insulated economy even more.
Gainesville has the triple good fortune of having an economy that is driven by external economic stimulus from
1. millions of dollars of government support of the University of Florida,
2. millions of dollars of health insurance coming into the local market paying for patients' health care at the 4 local hospitals and numerous other medical facilities that are the life blood of Gainesville, and
3. significant foreign investors from South Florida and around the globe. Plus, Gainesville is geographically insulated from the hurricanes that hit Florida, with no hurricanes ever hitting Gainesville in recorded meteorological history.
Of the 400 cities in the United States and Canada cataloged, examined, analyzed and described in the 850-page book, "Cities Ranked and Rated, Second Edition," Gainesville ranked No. 1. Gainesville began receiving national recogition as a great place to live in 1995 when Money Magazine declared the city to be the "Best Place to Live in America." The city has ranked eighth among the "Top Ten Value Towns for Those Considering Retirement in 2007," was No. 11 on an AARP list of "Best Places to Reinvent Your Life," and was ranked the "Most Technologically Advanced City" in Florida by Popular Science magazine.
And Gainesville ranked 12th on a list in Forbes Magazine of the best places to do business and have a career. Gainesville has a lot of very positive things going for it: a very educated labor supply, very strong income growth over the last few years, and very low business costs. These are very strong indicators of a healthy economy and an attractive place for businesses.
In addition to a strong local economy and quality of life, the Amendment 1 Homestead Exemption Portability appears to be kick starting home sales activity this spring. This improved real estate tax environment together with stimulus packages and low interest rates are spurring more local sales.
Gainesville is one of Florida's most optimistic real estate markets, with 83 percent of local homeowners indicating they expect the value of their homes to remain stable or increase in value in the next 12 months; mortgage interest rates remain affordable, and it is a great time to buy. Although the median price of homes sold recently has declined somewhat, a more accurate measure of individual home prices is the Office of Federal Housing Enterprise Oversight House Price Index, which measures price changes in repeat sales or refinancings on the same properties. By that measure, Gainesville home values were up 2.22 percent in the three months ending in December 2007. Plus, existing home sales increased 2.9 percent in February 2008.
Florida topped the list of states favored by international real estate investors with 26 percent of foreign investors buying properties in Florida. The weak dollar has made American properties popular among global investors. Some of Gainesville's foreign real estate investors are buying in bulk, such as clusters of condo units or whole floors of buildings, but others are making single-unit purchases to be rented or used as a base for U.S. travel.
For most Europeans, especially people in the United Kingdom, the United States is on sale! It's like buying stuff for 50 cents on the Euro. I help foreign investors overcome legal, financial and cultural barriers to buying real estate in Gainesville. The weak dollar and affordable home prices are exciting foreign investors in Europe and Asia.
Investing in Gainesville real estate is very attractive to international investors. It is fairly easy to purchase a home in this country; the U.S. does not restrict or scrutinize most property purchases by foreigners, as happens in other countries. There are few barriers to owning a property.Foreign investment in Gainesville real estate is likely to grow, especially as the affordable prices and weak dollar make the real estate market a bargain-hunter's paradise.
While Gainesville housing markets are no longer performing at record-breaking levels, Gainesville real estate is still considered a prime investment opportunity for foreign buyers and a 'safe haven' in which to put their money.
If you need the assistance of a real estate attorney in investing in Gainesville real estate, please call Zana Holley Dupee, Esq. of Bogin, Munns & Munns, P.A. at (352) 332-7688.
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