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.....
UNTILGooch 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, 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.