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Team Ryals Market Update
By Mike Ryals
Commercial Agent
December 2010
2010 was an interesting year. Activity has been slow but the market has had periodic, but sporadic, hiccups of activity. As the year has progressed, these periodic market up ticks have convinced me that the real estate economy is truly trying to improve. Unfortunately, real estate has slowed so significantly over the past couple of years that it will take a while for the benefits of a slowly improving economy to be felt.
Inventory remains very high is most sectors of the market, and interest rates are the lowest they have been in decades. The combination of these 2 factors is a “perfect storm” for buyers. In fact, it is my opinion that now may be one of the best times I have experienced in my entire 30+ year career to be a buyer.
As employment continues to improve (and this may understandably take a while), the office and industrial sectors should continue to improve. The multi-family sector is already experiencing an increase in activity and general overall improvement. Buyers seem to be remembering the old adage “Location, Location, Location” when evaluating properties as better located opportunities seem to be leading the recovery.
On a more global level, I’ve been reading that the more stable markets during the recession have been college towns and government based communities. Gainesville obviously fits that category which is a primary reason the Gainesville real estate market has not been hit quite as hard as other parts of the State.
While it is my opinion that the real estate market is slowly improving and activity is on the increase, we still need to practice collective patience and not be too anxious about a return to normalcy. The slowly inclining pace we’ve recently experienced will hopefully continue thru 2011 and into 2012-2013. It will most likely be several years before we are fully recovered.
