As I await the data from my trusted source to produce the monthly reports for real estate in Tallahassee, I felt compelled to go to the Tallahassee Board of REALTORs Multiple Listing Service (MLS) and pull some preliminary data. While the MLS is the source of information for most of the "experts" who report in the national media on home sales, I prefer to utilize all of the home sales recorded at the county.
The January year-over-year report will be posted in about 1 week. It will tell us if our prediction of falling unit sales and dramatic price drops continues to be accurate. I'm just hoping that it will not be as extreme as what the Tallahassee MLS is showing...
Tallahassee Home Sales Down By 37% In January
It is not fun to report these numbers month-after-month, but I feel that public awareness of the situation is the first step towards solving the problem. The glut of homes, coupled with the economic climate in our country, has hurt home sales. The following real estate graph shows unit sales down 37% across the entire Tallahassee Area MLS.
Home Prices Drop 18% In The Tallahassee MSA
In our January versus January comparison, the avergae home price is down 18% from $218,000 in January of 2008 to $179,200 in January of 2009. In Leon County, the drop was a little less at 13.2%, but that is still a large drop in just one year.
Home Values Fall 11% In Tallahassee Area
When we look at price per foot of homes sold, we see values down 11% in the Tallahassee area (6.6% in Leon County homes). This is a lesser amount than what we are seeing in the average price drop and fortunately, I think a more accurate view of what home prices are doing. If people buy bigger or smaller homes, the average price moves without really pointing to a value issue. But when we see movement in the price per square foot, I believe that is true market feedback on value.
Will Tallahassee Home Values Continue To Fall in 2009
You have to remember that this is just a preliminary report from the Tallahassee MLS, but yes, I believe Tallahassee home prices will keep falling until we see Tallahassee home inventory levels stabilize around 6.0 months of supply. Use this information wisely! If you are buying a home in Tallahassee, make sure it is priced aggressively. If you have a home for sale in Tallahassee, price it to sell now or you will have to keep dropping your price and never "catch up with the market." If you don't need to sell right now, keep your home out of the market. This will help reduce the glut of homes.
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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.