Residential Home Price Discovery In Tallahassee

Posted by Joe Manausa on Monday, March 31st, 2008 at 8:45am.

I have been posting the Tallahassee real estate market charts on the Tallahassee real estate web site for the past week. In doing so, I and many readers were observing that the following chart is a bit baffling.

As we can see above, it appears that prices are rising.... yet we know inventory has risen and unit sales have fallen. What we expect to see is some downward movement on prices. I asked readers of this blog (and others) for opinions on why this was happening and really none of us had a good answer.....

UNTIL

Gooch recommended we look at price per square foot. He reasoned that maybe consumers were able to buy more expensive homes due to falling interest rates, but that maybe they were getting more house. So, this next chart is what  Gooch requested. It shows residential home sales in Leon County by price per square foot, across different price ranges.

Gooch, prices are indeed falling. While this is not the best news in the world, it certainly makes sense with unit sales being down.

So, how are the current asking prices for Tallahassee homes reflecting this?



As we can see from this, with few exceptions, there are many price ranges that have a majority of their homes over-priced. It appears that homes priced between $150K and $200K are priced very reasonably, while homes in higher price ranges seem to be off the mark quite a bit.

Just remember, in every market, their are unrealistic Sellers who ask more for their home than the market is willing to bear. They make the "average" asking price much higher than it would be if only serious sellers were in the market. Today, you can definitely find the serious sellers out there. They are the ones that have their homes priced well below their competition.


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Joe Manausa is a real estate blogger, 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.

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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.

4 Responses to "Residential Home Price Discovery In Tallahassee"

gooch wrote: Thanks for the info.
You stated that prices are indeed dropping and that may not be the best news for folks.
Now Joe, let's not forget to take the buyer's perspective in all this and say that this is wonderful news for a market that was pricing more and more people out of owning the American dream. Couple that with current interest rates and it's a great time to buy. We're all sellers and buyers here. The only people I feel sorry for are those who plan on having real estate alone fund their retirement. I guess this is proof we all need to diversify. This real estate market has volatility just like stocks.

Posted on Monday, March 31st, 2008 at 10:26am.

Dave wrote: I completely agree with commentor #1. There are countless opportunities for the first time buyer, or the move up buyer.

Posted on Monday, March 31st, 2008 at 10:36am.

Joe Manausa wrote: Thanks Gooch. I agree with your outlook.

Posted on Monday, March 31st, 2008 at 1:00pm.

Residential Communities wrote: Your information is very useful to my family and my friends Thank you!

Posted on Tuesday, February 10th, 2009 at 3:46am.

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