The Housing Crisis Affects Horse Farm Values in Ocala

Ocala Florida, established in 1846, is the seat of Marionforeclosed properties on the market.
County, in Florida, and is known as the horse capital ofOcala horse farms have not been hit quite as hard as
the world. Although thoroughbred horse breeding is onehomes in more urban areas. Horse farms range in
of the primary businesses in the area, so it is notprice from around $300,000 for a small acreage
surprising that when the economic downturn began,parcels to multi-millions of dollars for hundreds of acres
Ocala, would not escape the crunch the rest of theand extensive outbuildings. Owning and raising horses
nation was feeling.is an expensive venture, and the industry has been
The current economic crisis actually began with theimpacted by the weak economy. Although the number
burst of the housing bubble in the United States.of horse farms for sale has increased, the prices have
Housing values had become so overinflated throughoutnot really gone down much.
most of the country, that a decline in values wasThe horse farm industry was hardly involved in the
predictable. But the crash was much worse than hadmortgage industry meltdown because mortgage
been anticipated by anyone.lending rules have always been tighter for agricultural
As unemployment continues to rise nationwide, anland. Buyers of this type of property have always had
industry centered around leisure and entertainment,to come to the table with substantial down payments.
such as horse breeding and racing, tends to feel theHowever, because the trade in thoroughbred horses is
crunch perhaps more than industries that are morea luxury type of transaction, the revenue from horse
related to basic survival. In fact, in this recession, evensales this year is expected to drop 25%, and this will
food related industries are being impacted.very likely impact the number of horse farms for sale
Ocala real estate is a mix of homes and farms. Thein the spring.
population there has been growing steadily for the lastIn the last few months, with a boost from historically
twenty years. In fact, Ocala Florida is one of thelow mortgage rates and the first time home buyer tax
fastest growing areas in the country, and has been forcredit, the number of real estate sales has been on
several years.the rise. There has been a 63% increase this year as
Ocala has been affected by the failing real estatecompared to this time last year, in existing home sales.
market in Florida. The median sales price of homes inAlso, because Ocala is prime real estate, with two
Ocala is $98,750, a 25.2% drop from 2008 values, andmajor cities nearby, and at the crossroads of some
just about 50% of the $173,100 median price of homesmajor freeways, real estate investors have been
across the country. There are more than 800swooping up properties at these much deflated values.