Encouraging signs in local housing market, economy despite upcoming election season

By on September 20th, 2012

Real estate reports for the month of August have been released and the results are encouraging for the local housing market. Residents in Marion and Alachua County can expect an all-around improvement in their economies.

Adam Pages

The local housing market and economy are improving despite an election season, which is good news for sellers of houses like this one in Gainesville.

The sales of single-family homes are already up 26 percent from where they were at this time last year. Greg Lord, a member of the Ocala and Marion County Board of Realtors, attributed the increase in sales to families choosing to buy sooner than later.

“It appears that the inventory is shrinking, helping to drive the buyers to making decisions to purchase right now,” he said.

Current inventories represent an 8.9 percent supply of houses. Foreclosures and short-sales still dominate that market, but those numbers should shrink. Once inventory reaches a six-month supply, the market will shift to favor sellers. It’s a simple economic lesson rooted in the principles of supply and demand; as the inventory of existing houses decreases, housing prices will begin to rise.

The effects of the declining housing inventory would stimulate local economies. More houses would need to be built, which would result in additional jobs and tax revenues. Lord cautioned that it’s a process that will take some time.

“We’re still priced in a buyer’s market. It’s gonna take a little while for it to change to see quite a bit more inventory,” he said.

The political and economic uncertainty during the presidential election period factor into this delay.

Darryl Kirkland, a real estate agent in Gainesville, said that businesses tend to stagnate leading into November in election years.

He also notes that this trend takes place regardless of the outcome of the election. But fear not: Market activity should resume when the campaigning comes to a close.

“After November and after the holidays, spring and 2013, things should start picking back up again because we’ll have at least four more years before the next election,” Kirkland said.

George Pappas edited this story online.

This entry was posted in Business, Local, Politics and tagged , , , , , , , , , . Bookmark the permalink.

More Stories in Business

Alachua Publix to Open Saturday, Provide 125 Jobs

Lydia Romig was one day too early. She went to the new Publix in Alachua on Friday during her lunch break, hoping to pick up her favorite sausage-and-kale soup. Romig is just one eager customer of many who is excited […]

Florida’s private sector jobs have grown for 46 consecutive months, and its annual job growth rate has exceeded the nation’s since April 2012. According to the Florida Department of Economic Opportunity, the top four  industries for job creation in Florida this year have been in leisure and hospitality; education and health services; trade, transportation and utilities; and professional and business services.

Alachua County Adopts Entrepreneurial Spirit To Bring In More Businesses

Florida has the highest job growth rate among the most populous states and the third highest rate in the nation. Alachua County boasts a long history of low unemployment rates and steady job growth rates and works to continue attracting new business.


Durty Nelly’s Irish Pub Ends Smoking Inside

It’s the start of a new era at Durty Nelly’s Irish Pub as the Gainesville bar banned smoking in an effort to create a healthy, welcoming environment for its customers and employees.

Chip-enabled credit card. Taylor Trache / WUFT News

New Credit Card Readers Provide Local Businesses With Costly Security

Oct. 1 marks the national deadline for businesses to switch over to chip-enabled card reader terminals. Some local businesses are debating whether or not the cost is worth the investment.

From left to right: Domino’s employees Geo Crume (far left) and Sawyer Cunningham (far right) make pizzas at the new pizza theatre store. The store on Archer is the first location to offer exclusively digital services.

Gator Domino’s Ditches Drive-Thru Microphone, Goes Digital

Gator Domino’s is going digital. At the new store, scheduled to open Oct. 5, workers will not take orders at the drive-through. Food must be ordered by telephone or by a digital device ahead of time. A “pizza theater” will be featured, where customers can watch their food being prepared. The owner, Freddie Wehbe, says Gator Domino’s digital changes are first of its kind among other Domino’s stores.

Thank you for your support

WUFT depends on the support of our community — people like you — to help us continue to provide quality programming to North Central Florida.
Become a Sustainer
I want to support FM 89.1/NPR
I want to support Florida's 5/PBS
Donate a Vehicle
Underwriting Payments