In yesterday's blog, I chose to revisit an old blog topic and wrote "Time to Revisit The 3000 Square Foot House." This was a follow-up article to one that I wrote in July about what has happened to the 3000 square foot house. The article was inspired by a question that I had received from a relocation company that wanted some background information about the Tallahassee real estate market and felt that a good litmus test would be to see some history of home pricing for 3000 square foot homes.
Tallahassee Home Inventory Holding Value
Fortunately, this type of research provides some residual information that is very valuable. In doing the data gathering for this blog, I decided to take all the home sales in Leon County (Tallahassee real estate market) from the Tallahassee MLS and break them down into five size groups (1000,2000,3000,4000 & 5000 square feet). For example, the 4000 square foot homes in Tallahassee group was compiled from all homes sized from 3600 to 4400 square feet.
What this shows is rather amazing. Unit sales are down anywhere from 42% to 58%, yet prices have only come down very little. I think this is a sign that there is still a lot of room for prices to diminish, but the key to that will be inventory levels (and whether they continue to reduce). If inventory levels continue to drop, it will ease the pressure on pricing, and that is why we track Tallahassee home inventory levels on a daily basis.
Tallahassee Average Home Trails The Market Trends
When we graph the above information, we find that the "2000 square foot house" is doing worse than the other categories. Since the majority of our sales fall in this category, we can see why the overall market is down over 50% from peak to now.
Tallahassee Home Sales Trend By Home Size
This final real estate graph shows how the greatest impact of falling unit sales has been centered on the 2000 square foot home. With this portion of the market approaching a 60% reduction from the top of the market, it has had a huge impact on the overall market figures.
Again, the key to finding the bottom will be aligned with inventory movement in the Tallahassee real estate market. Our consistent monitoring of the flows of homes both on and off the market will give us all the insight necessary to determine the turn in the Tallahassee housing market.
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Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.