Tallahassee Real Estate Blog

What Percent Of Homes Are Selling?

Joe Manausa — Wed, 06 Aug 2008 09:00:18 +0000

I decided to take a closer look at our daily real estate inventory analysis to see if I could find a trend that would make us smile a little in the Tallahassee real estate market, and I think I’ve found one that will excite even the loudest bear in the market.

Finding Out The Ratio Of Homes Selling

What if we tracked, over a long period of time, the daily number of homes sold in the real estate market and compared it with the number of homes coming onto the market. For example, if today 20 homes were listed “For Sale” in the MLS and 10 homes “Sold” today, we could say that for the very-very-very short-term, 50% of the homes sold. And if we tracked these figures over time, we could start to draw observations that would become increasingly more accurate as more time was evaluated.

So that is what I did. We have been tracking daily inventory changes in the Tallahassee real estate market since the beginning of the year. I applied the above scenario to the data, and the following chart shows something very exciting…..

This is the closest thing to “Great News” that we’ve seen since 2005. The trend for sales versus new inventory seems to be trending stronger. Unfortunately, with the data that we have compiled, 180 days (1/2 a year) is the long-term trend right now. I will feel much better when our long-term trend is one year or more.

As a reminder for those who subscribe to the Tallahassee Real Estate Blog by email, some embedded pictures and videos might not be appearing in your email and you might need to click the title header to go to your browser where all will be visible.

Keep checking out the Tallahassee Real Estate Blog every day for updates that include charts, graphs, and analysis of the Tallahassee real estate market.

If you like this Article then please subscribe to my blog through a full RSS feed, or you can . You will be able to stay informed about the happenings in the Tallahassee Real Estate Market. You can also subscribe to this blog and have it delivered by Email.

Joe Manausa is a real estate investor and the Broker and Co-Owner of Century 21 First Realty. He can be reached via e-mail through the Tallahassee Real Estate Website or catch his latest writings on the Tallahassee Florida Real Estate Blog , or by calling (850) 386-2001.

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MLS Inventory Update

Joe Manausa — Mon, 04 Aug 2008 07:00:45 +0000

It’s time for another update of our housing inventory in the Tallahassee Board of Realtors Multiple Listing Service (MLS) which covers homes in Leon County, Wakulla County, Gadsden County, Jefferson County, Franklin County and a category referred to as “Other Counties.”Every month we track the MLS inventory trends and produce the following real estate inventory chart:

Updated MLS Information

The purple line says it all. Inventories have hit the seventeen (17) months of supply range and look to continue climbing in the near future. Sales (green line) continue to trend down and supply (red line) is only beginning to drop.

More analysis is needed with this information as it is unwise to lump all these properties together. While each county shares similar market reactions, there is a distinct difference between beach properties and inland properties. I will do an in-depth analysis of each county in the coming weeks.

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Happy Birthday Mom

Joe Manausa — Fri, 01 Aug 2008 06:08:59 +0000

Happy Birthday Mary Lou Manausa

Today is my Mother’s birthday (I can’t say how many), so I thought I’d list the 70 reasons why I love my Mom. Dad, in case you’re reading this, you can consider this sentence my “thank-you” for any of the following that also apply to you (as it’s not your birthday).

70 Reasons Why I Love My Mom

1	Because she is my Mother
2	Because #1 doesn’t tell you how big I was at birth
3	Because she taught me right from wrong
4	Because she always led by example
5	Because she raised five boys *
6	Because she drove me to basketball practice for 6 years
7	Because she drove me to baseball practice for 7 years
8	Because she drove me to football practice for 8 years
9	Because she drove me to swim practice for 9 years
10	Because she encouraged me to become an Eagle Scout
11	Because she filled in my 1000+ page application to West Point
12	Because she told me not to whine when I had my wisdom teeth removed
13	Because she drove me to the doctor when I broke my nose
14	Because she nursed me back to health every time I was sick
15	Because she told me I wasn’t sick when I didn’t want to go to school
16	Because she read to me when I was young
17	Because she made me play outside, rather than watch TV
18	Because she taught me how to be competitive
19	Because she sacrificed comforts to provide for her family
20	Because she never laughed at the spatulas I gave her for her birthday
21	Because she never laughed at me pronouncing her perfume “Channel N5″
22	Because she encouraged me to participate in sports
23	Because she taught me to love giving
24	Because she earned her Masters Degree just a few years ago
25	Because she would punish my older brothers when I talked them into doing something bad **
26	Because she waited until she was 60 to finish her degree
27	Because she was “on call” with the Principals office for 8 years
28	Because she gave birth to my brother Bo on September 23, 1979
29	Because she indirectly taught me how to sell (think about this one)
30	Because she taught me how to read
31	Because she taught me how to love reading
32	Because she made me breakfast every day until I graduated from highschool
33	Because she made me dinner, late at night, after football and swim practice
34	Because she makes me Gooey Butter Bars on my birthday
35	Because she makes me Coffee Cakes at Christmas
36	Because she taught me how to cook
37	Because she let me watch James Bond on Sunday night (when Dad said no)
38	Because she gave birth to my brother Danny on November 29, 1969
39	Because she watches the grand kids on New Year’s Eve
40	Because she still loves the grand kids on New Year’s Day
41	Because she makes the best Triple Chocolate Cake
42	Because she taught me to like Carrot Cake and Vinegar Pie
43	Because she gave birth to me on June 12, 1965
44	Because she let my brothers and me ride our bikes all over town
45	Because she gave birth to my brother Mike on August 3, 1963
46	Because she gave birth to my brother Trent on May 8, 1962
47	Because she taught me how to learn
48	Because she’s kept my Dad happy for nearly 48 years of marriage
49	Because she taught me how to have anything I wanted *******
50	Because she ran a marathon when she was 50
51	Because she went to my Army Football games when she could not afford it
52	Because she never complains about any tough breaks that life has dealt her
53	Because she inspired me to always do better
54	Because she held my hand when I was scared
55	Because she didn’t hold my hand when I needed to learn for myself
56	Because she let me use the “Florida Playboy” van for my dates
57	Because she taught me how to wrap a present
58	Because she encouraged me to participate in charity
59	Because she went to my football games in the rain (Peach Bowl)
60	Because she enjoyed going to my football games in the rain (not the Peach Bowl)
61	Because she still calls me Joey
62	Because she helped me get my first job at McDonalds
63	Because she helped me buy my first car
64	Because she taught me to enjoy algebra
65	Because she cried when the KKK marched downtown in the 1970s
66	Because she won the Tallahassee Open (Tennis) in the 1970s
67	Because she reads my blogs and tells me they are good
68	Because she loves me unconditionally
69	Because I can count on her for anything
70	Because she continues to be the best role model that I know

* My Mother (parents) raised five boys. We like to point out that 4 out of 5 ain’t bad (Accountant, Computer Scientist/Physicist, myself, Lawyer, and a Doctor)

** A certain trip to a convenience store with Easter Present Money comes to mind

*** Perhaps the most profound lesson of my life on achieving any goal you could possibly desire. When I was roughly ten years old, the “Huffy Thunder Road” bike hit the markets. I saw it on TV commercials and I immediately rode my not-cool-purple bike to Woolco at the Tallahassee Mall to check one out. It was $75 worth of pure, cool, off-road bliss. I had to have one. So, I went home and asked my Mom if I could have a Huffy Thunder Road bike. She said I could…. but this conversation followed:

Mom - “How much money do you make cutting grass?”
Me - “$3 per job.”
Mom - “But don’t you have to pay a $1 for the mower and gas fund?”
Me - “Yes”
Mom - “So what do you really make cutting grass?”
Me - “$2 per job.”
Mom - “Great, so how many lawns do you need to cut to have a new Huffy Thunder Road bike?”
Me - “Well, let’s see … $75 divided by $2 per job equals about 38 lawns!”
Mom - “But don’t we put 1/2 of what we earn into savings?”
Me - “OK, so all I need to do is cut 75 lawns and I can have the bike!”
Mom - “Yes”

I had the bike by the end of that summer. The lesson I learned was that I could have anything I was willing to work for. — Thanks Mom!

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HR 3221 - Good For Tallahassee

Joe Manausa — Thu, 31 Jul 2008 07:46:44 +0000

Good Deal … Bad Deal … We’ll See

Fannie Mae and Freddie Mac had a good day yesterday, did you?

Overall, I think Tallahassee had a good day with this bill being signed by President Bush yesterday. Tallahassee is a town that historically is very active in loans guaranteed by Fannie Mae and Freddie Mac (government loans) so the fact the financial reinforcement has been provided means that Tallahassee home buyers will have their “normal” sources of mortgage funds.

Now, back to Fannie and Freddie, it seems they got much of what they asked for, and a few things they did not:

$300B (B as in Billion) to expand the Federal Housing Administration (FHA) loan guarantee programs (yeah)
A 1-year moratorium on “risk based” pricing (boo)
A $7,500 tax credit for first-time home buyers (requiring a repayment schedule of 15 years) (yeah and boo)

I’m blogging on this important topic because one of our avid readers, “Steve R” asked me “Are you going to write an entry on the housing bill that passed today? I am curious to see how you think the bill will affect the local market. The $7,500 tax credit should nudge a few fence-sitters at least.”

Steve, this is the type of issue that is important to our industry but I typically “consume” the information rather than report it in the Tallahassee Real Estate Blog. I agree with you that it is of significant importance to our industry (especially in the Tallahassee real estate market where government loans are prolific) and therefore I offer this brief summary, as well as some key links to sites that review it to a greater extent than I am capable of doing today.

Key Links To HR 3221

HR 3221 Details
National Association of REALTORS®
Summary of Key Provisions of H.R. 3221
First Time Home Buyer Tax Credit
National Association of Home Builders (NAHB) Press Release concerning HR 3221

As a reminder for those who subscribe to the Tallahassee Real Estate Blog by email, some embedded pictures and videos might not be appearing in your email and you might need to click the title header to go to your browser where all will be visible.

Keep checking out the Tallahassee Real Estate Blog every day for updates that include charts, graphs, and analysis of the Tallahassee real estate market.

If you like this Article then please subscribe to my blog through a full RSS feed, or you can . You will be able to stay informed about the happenings in the Tallahassee Real Estate Market. You can also subscribe to this blog and have it delivered by Email.

Joe Manausa is a real estate investor and the Broker and Co-Owner of Century 21 First Realty. He can be reached via e-mail through the Tallahassee Real Estate Website or catch his latest writings on the Tallahassee Florida Real Estate Blog , or by calling (850) 386-2001.

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What Is The Difference Between Pre-Approved And Pre-Qualified

Joe Manausa — Wed, 30 Jul 2008 10:59:17 +0000

Too often, we work with people who want to buy a home in Tallahassee who do not understand the importance of being a strong buyer. They believe that due to the nature of the market, they have thousands of homes from which to choose so they can just go out and “shop.”

But that is not the case in the Tallahassee real estate market. As a matter of fact, that has never been the case in just about any real estate market. You see, the inventory of homes for sale in Tallahassee is quite large, but it can be divided into three basic groups:

Homes for Sale In Tallahassee - Ready Sellers

Ready to move now
Priced below the competition
Experienced real estate professionals handling their sale

Homes for Sale in Tallahassee - Serious Sellers

Want to move now
Priced with the competition
Experienced real estate professionals handling their sale

Homes for Sale in Tallahassee - Sellers Testing The Market

Would move now under certain conditions
Priced above the competition
Inexperienced real estate professionals handling their sale

As you can see, with each changing group, motivation drops and price increases. So, what does this mean for people who are serious about buying a home in Tallahassee?

The group of homes that you are wanting to buy is small. It is almost a Sellers’ market in that group. These Sellers who have priced their homes below market are getting competitive bids by other serious buyers. If you want to be a serious buyer and win a bid, below market, you need to make yourself stand-out among all other buyers bidding on a great home for sale in Tallahassee.

Get pre-approved with a great mortgage lender. This will be a full loan application with a conditional approval letter (minimal conditions, such as appraisal and home conditions; NOT conditional on aspects relating to the buyers’ credit)
DO NOT get pre-qualified, which is anything less than the above (full loan application and limited conditional approval).
Make sure your REALTOR agrees with your choice of mortgage lender. If you are working with a real estate professional with plenty of experience, their insight will save you a lot of money and a lot of aggravation in selecting all the professionals needed in the home-buying process.

So, why do these points matter? Well, when we submit your offer to the Seller, that Pre-Approval Letter represents a bag of cash in hand for the Seller. Imagine if the Seller gets three offers, one from an pre-approved buyer, one from a “pre-qualified” buyer, and one from a not-yet-qualified buyer. If you are a ready seller, you do not want to take your home off the market without somebody first showing you the money. Be that somebody and you will get a great buy in the Tallahassee housing market.

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Why We Want To Meet You First

Joe Manausa — Tue, 29 Jul 2008 10:27:33 +0000

Have you ever been driving around a neighborhood and seen a home for sale that really piqued your curiosity? Most likely you called the real estate brokerage office and asked to see the property, only to be asked to come to the office. The office might even be on the opposite side of town!

This scenario happens all to often in our Century 21 in Tallahassee (Century 21 First Realty). You might wonder why most real estate professionals will refuse to meet you at the home, rather they insist on you coming to the office for the first meeting. You might be surprised to find out that there are several very important reasons why this first meeting should occur in the real estate brokerage office.

The Seller’s Home Is Not A Meeting Place - I believe it is important to respect the privacy of the homeowner. If we (real estate professionals) have not determined that you are qualified to buy the home in question, as well as want to buy the home in question, is it really right for us to allow you to wonder all through these people’s home? The homeowners’ have put their faith in their real estate brokerage company to qualify all people before taking them through their relatively unsecured home, and I believe it is important that we do so as often as possible.

Your Security Concerns Us - If you have never met the real estate professional with whom you speak, is it really safe for you to meet them at a private location. How do you know you really got in touch with the person that you were calling? It is in your best interest to meet with them first at a recognized place of business.

Our Security Concerns Us -Just as you have not met with the real estate professional, we have not met with you yet either. There are numerous reports of Realtors getting robbed and even murdered when heading out to show a home. By meeting in the office first, we can get to know the buyer and we can report our itinerary to the office staff. Additional measures, such as getting a copy of the buyers’ drivers license reduce our risk of unsafe practice.

Customer Service Is Our Top Goal - While the previous reasons are valid in their own right, the goal of the real estate brokerage office should be to win your business (both now and in the future). We want to be your Realtor for Life! In order to do that, we do not want our relationship to hinge upon one single home. Most likely, the home that you are curious about will not fit all of your needs, therefore, you will need a real estate company to provide you with all the modern tools, technologies, and experience needed to provide you with top-notch, referral winning service. That is our goal!

So the next time you see a house and want to peak inside, be prepared to meet us at the office first. While it might not seem as convenient to you as just popping in, it is the best practice for you, the homeowner, and the real estate professional.

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Tallahassee Real Estate - Market Graphs Updated

Joe Manausa — Fri, 25 Jul 2008 09:30:05 +0000

Once a month, I receive my data for all the recorded sales in Leon County. This complete data set is roughly 50% larger than the sales data from the Tallahassee Board of Realtors Multiple Listing Service (MLS), and thus it gives us a better perspective of the entire Tallahassee real estate market than just the MLS reports.

Fortunately, you can visit our Tallahassee Market Bulletin more than just once per month, as we update the information there at least twice per week. The Tallahassee Market Bulletin can be viewed any time and is located at http://www.manausa.com/market.php. Also, you might have noticed the three buttons that are in the footer of each blog post. You can access market reports directly by clicking any or all of these buttons.

The Tallahassee Real Estate Market Report for June has been posted, please stop by and don’t forget to give us feedback so that we can continue improving upon the reports.

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Tallahassee Housing Inventory Update

Joe Manausa — Thu, 24 Jul 2008 03:54:46 +0000

Today’s blog is going to be an update on the inventory of homes in the Tallahassee real estate market. I want to remind the readers that this information can be found, updated twice per week, on our Tallahassee Real Estate Web site at http://www.manausa.com/market.php.

The key to figuring out the market is understanding the cycles that we must endure. From the graphic below, we can see that we spent the past two years stuck between Point A and Point B. Prices have risen and we were seeing our inventory grow. This was in part due to over-building, but primarily due to the slowing actions of the Buyers. Buyers no longer saw great value in the prices of Tallahassee homes.

The reason that we track inventory movement on the Market Bulletin is so that we can get an early warning for any shifts in the cycle. We began to see prices dropping about four months ago, letting us now that we had shifted between Points B. and C.

This shift can be very subtle and it typically cannot be identified without tracking a one-year-inventory-trend of homes in the Tallahassee real estate market. Seasonality in the real estate market causes inventory adjustments year-long, so it takes a one-year trend to truly identify these market shifts.

The next key that we are looking for is inventory falling, as we see in the graphic between Points C. and D. Again, it takes a one-year trend to confirm that inventory is definitely falling, but some of the market graphs below are showing signs that we have moved to this phase of the market cycle.

Tallahassee Real Estate Market 30-Day Inventory Trend

This first chart is the shortest “short-term” trend chart that we maintain. The implications of what is demonstrated are fantastic…. inventory levels in Tallahassee appear to be dropping. But remember, this is just a short-term trend and we could be seeing the results of seasonality.

Tallahassee Housing Inventory Levels 90-Day Trend

Even more exciting, we find that the 90-day trend chart supports the 30-day trend. We are seeing inventories coming down over the past quarter of the year. If this trend continues, we will see if finally impact the 1/2 year trend below.

Tallahassee Homes - 180 Day Inventory Trend

Unfortunately, our 6-month trend shows that our inventory is still increasing. Only time will tell if the short-term movements will stick around long enough to affect the long-term trend.

Inventory Trends In The Tallahassee Real Estate Market

This chart summarizes the three previous charts. Once we have been tracking inventory levels for a year, this chart will speak volumes on the condition and future of inventory movement in the Tallahassee real estate market.

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What’s For Sale in the Tallahassee Real Estate Market

Joe Manausa — Wed, 23 Jul 2008 08:54:27 +0000

As I get ready to make my annual trip to West Point, I find myself checking the Tallahassee Board of Realtors Multiple Listing Service (MLS) to find out what is for sale in the Tallahassee real estate market.

The good news is that inventory has made a modest decline in the past few weeks. When I look at homes for sale in Tallahassee (single family detached homes, condos and townhouses), I find that the total inventory of homes on the market in Tallahassee has dropped to 3,217 homes. Here is how that breaks down:

Homes For Sale In Tallahassee

322 new construction, single family detached homes
1,845 resale, single family detached homes
334 new construction condos and townhouses
716 resale condos and townhouses
3,217 housing units for sale in Tallahassee

Of course I’m curious about pricing points, so here is what I have found about the average asking price by property type in Tallahassee:

Average Price Per Square Foot In Tallahassee

New construction, single family detached homes - $150 per square foot
Resale, single family detached homes - $140 per square foot
New construction condos and townhouses - $198 per square foot
Resale condos and townhouses - $121 per square foot
Average Price per square foot for a home in Tallahasseee - $143

Now, square footage costs is only a general rule of thumb, so don’t go grabbing your calculator to see what your home is worth (especially since these are the asking prices of what is on the market, of which, over 60% will fail to sell!).

I guess the next logical statistic to point out is the average asking price by property type, so here it is:

Average Asking Price For A Home In Tallahassee

New construction, single family detached homes - $320,691
Resale, single family detached homes - $301,126
New construction condos and townhouses - $266,413
Resale condos and townhouses - $138,893
Average asking price for a home in Tallahassee - $263,373

Now, to round out our Tallahassee housing data, the average home sizes are listed below:

Average Home Size In Tallahassee

New construction, single family detached homes - 2,135 Square Feet
Resale, single family detached homes - 2,149 Square Feet
New construction condos and townhouses - 1,349 Square Feet
Resale condos and townhouses - 1,150 Square Feet
Average home size in Tallahassee - 1,842 Square Feet

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