Everybody knows that we have a lot of homes for sale in Tallahassee, but we do not often go into great detail about what is on the market. Today's blog post will show a simple break-down of the offerings in the Tallahassee housing market.
One of the first questions people ask when they start the process of buying a home, they want to know about distressed homes for sale in Tallahassee. They want to know about bank owned properties, foreclosures, short sales, and any homes that offer seller financing of some sort. They want to know about homes that offer lease purchase. Home buyers today want to really know the "lay of the land."
Current Inventory Of Homes For Sale In Tallahassee
The real estate graph above shows that roughly 73% of the homes for sale in Tallahassee are listed as "arms length," meaning that they show no signs of distress and the home sellers have not indicated any willingness to do owner financing of any type. This means that just over 1/4 of the listings in the MLS are distressed properties, and most likely the number is much higher due to input errors on the part of many members of the MLS.
This graph of the current inventory of homes for sale in Tallahassee also shows that much of the distressed property for sale is in the "investment" price ranges, and the percentage drops as the price ranges rise. This is not surprising since the student rental properties were grossly over-built during the boom of the housing market.
What I do know that this information is saying is that investment grade homes for sale are well down the road in the foreclosure process and our market is keenly aware of what is available. These properties need to be cleared from the market and I would say that we have already been exposed to the majority of investment properties that will end up in default due to the collapse of the housing market.
What I do not know is where we stand on properties in the higher price ranges. Will we see a rush of these homes hit the market as distressed properties in the near future due to falling demand? It is not easy to say at this point, but I will say that we have a large supply of homes for sale that will take more than just a year or two to consume.
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.