GAINESVILLE MARKET UPDATE
[GAINESVILLE, FL]
By: Sara Watson
With real estate trials and tribulations splashed across the pages of newspapers, people will inevitably find themselves discussing those three little words: Buy or Rent?
According to RealtyTrac Inc., a California-based company that tracks foreclosures, now may be a bad time to buy. From August 2006 to August 2007, foreclosures are up 115 percent. Some of the increase may be due to the large number of sub prime adjustable rate loans that are resetting, but the high numbers suggest a trend that homeowners simply cannot make timely mortgage payments.
The current national housing slump has even caused foreclosures to increase on a monthly basis. Last month, RealtyTrac reported 243,947 foreclosure filings nationally, compared with July's total of 179,599 filings. Bank repossessions have increased as well.
Trailing closely behind Nevada and California, Florida had the nation’s third highest foreclosure rates. The state reported 33,932 foreclosure filings in August, a 77 percent increase from July. This means that one in every 243 Florida homes had a foreclosure filing.
On the flip side, some suggest that when it comes to a condominium, buying has become the better option in today's market. In Florida cities like Gainesville, lower interest rates, pricing packages, and a variety of new condominiums and condo-conversions are changing people's minds when it comes to buying.
Buying a condominium may be a smart move for college students planning to stay in Gainesville through graduate school. Many families purchase condominiums for their college-aged children instead of dealing with proprietors and moving to different apartments year after year.
However, because some students do not stay in Gainesville for very long, they may choose to rent rather than buy. The large student population has also influenced the local market in Gainesville, meaning that developers have to revert from selling condos and condo-conversions to renting them, resulting in fewer sales. According to the Alachua County Property Appraiser's office, 804 condominiums were sold between January and June 2006, compared with just 322 sales between the same period in 2007.
When considering whether to buy or rent, weigh the options carefully. Wayne Archer, executive director of Real Estate studies at the University of Florida said in a recent Gainesville Sun article that when it comes to a condominium, think about the quality of construction, location, and length of time you intend to live there.
In addition, there are several resources available to help you determine whether to rent or buy, and how to manage your real estate effectively. The U.S. Department of Housing and Development, at www.hud.gov, is a great resource for anyone interested in buying, selling, renting or owning. HUD also has a list of tips for avoiding foreclosure. The list includes prioritizing spending, opening and responding to all mail from your lender, and knowing your mortgage rights.
To learn more about mortgage rights and additional ways to prevent foreclosure, visit www.fha.gov. Determining which option is more viable when it comes to buying or renting is easier with the use of an affordability calculator. Plug in prices, loan length, interest rate, tax rate and more to see what you can afford. Visit www.ginniemae.gov for the affordability calculator, as well as a loan estimator.
Gainesville Florida Condos
By: Sara Watson
With real estate trials and tribulations splashed across the pages of newspapers, people will inevitably find themselves discussing those three little words: Buy or Rent?
According to RealtyTrac Inc., a California-based company that tracks foreclosures, now may be a bad time to buy. From August 2006 to August 2007, foreclosures are up 115 percent. Some of the increase may be due to the large number of sub prime adjustable rate loans that are resetting, but the high numbers suggest a trend that homeowners simply cannot make timely mortgage payments.
The current national housing slump has even caused foreclosures to increase on a monthly basis. Last month, RealtyTrac reported 243,947 foreclosure filings nationally, compared with July's total of 179,599 filings. Bank repossessions have increased as well.
Trailing closely behind Nevada and California, Florida had the nation’s third highest foreclosure rates. The state reported 33,932 foreclosure filings in August, a 77 percent increase from July. This means that one in every 243 Florida homes had a foreclosure filing.
On the flip side, some suggest that when it comes to a condominium, buying has become the better option in today's market. In Florida cities like Gainesville, lower interest rates, pricing packages, and a variety of new condominiums and condo-conversions are changing people's minds when it comes to buying.
Buying a condominium may be a smart move for college students planning to stay in Gainesville through graduate school. Many families purchase condominiums for their college-aged children instead of dealing with proprietors and moving to different apartments year after year.
However, because some students do not stay in Gainesville for very long, they may choose to rent rather than buy. The large student population has also influenced the local market in Gainesville, meaning that developers have to revert from selling condos and condo-conversions to renting them, resulting in fewer sales. According to the Alachua County Property Appraiser's office, 804 condominiums were sold between January and June 2006, compared with just 322 sales between the same period in 2007.
When considering whether to buy or rent, weigh the options carefully. Wayne Archer, executive director of Real Estate studies at the University of Florida said in a recent Gainesville Sun article that when it comes to a condominium, think about the quality of construction, location, and length of time you intend to live there.
In addition, there are several resources available to help you determine whether to rent or buy, and how to manage your real estate effectively. The U.S. Department of Housing and Development, at www.hud.gov, is a great resource for anyone interested in buying, selling, renting or owning. HUD also has a list of tips for avoiding foreclosure. The list includes prioritizing spending, opening and responding to all mail from your lender, and knowing your mortgage rights.
To learn more about mortgage rights and additional ways to prevent foreclosure, visit www.fha.gov. Determining which option is more viable when it comes to buying or renting is easier with the use of an affordability calculator. Plug in prices, loan length, interest rate, tax rate and more to see what you can afford. Visit www.ginniemae.gov for the affordability calculator, as well as a loan estimator.
Gainesville Florida Condos
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