For the purpose of this study, we will define residential sales in the Tallahassee real estate market as the sales of condominiums and townhouses (CT) plus the sales of single-family detached homes (DET) in Leon County, Florida. These abbreviations are used in the following graphs to differentiate the unit types.
The first graph depicts units sales (quantity) for the months of January through April for each year. We can see that the market peaked in 2006 and has been settling back since. Based upon these units sales figures, we can see that the first four months of sales in the Tallahassee real estate market were down 54% from the height of the market.
The next graph records the movement of average prices by property type in the Tallahassee real estate market. As we would expect, prices continued to move higher beyond the height of unit sales (lag in market awareness) and peaked in 2007, and since we have only seen about a 1% drop in the average price of residential properties since that time. It is this information that I continue to see reported as "proof" that our local market is doing very well.
The next graph shows the average size of homes sold during this period in the Tallahassee real estate market. Unlike the previous two graphs, this one shows that the average size home has actually started to increase since the height of the market in 2006. I think this reflects the buying power of the buyers in the Tallahassee real estate market is stable or has grown (interest rates are low, employment is strong) and so even while prices drop (see next chart), the average price stays the same because buyers are buying bigger homes.
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Joe Manausa is a real estate investor and the Broker and Co-Owner of Joe Manausa Real Estate. 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.
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.