Southwood In Tallahassee

Posted by Joe Manausa on Tuesday, July 15th, 2008 at 12:39am.

Several months ago, I wrote a blog about the Southwood Subdivision in Tallahassee. Back then, I reported that home prices were dropping and heading towards the "pre boom" levels that we saw in 2005. I thought it might be interesting to see a quick update on what is happening in Southwood three months later. The first thing that I saw when I pulled information from the Tallahassee Board of Realtors Multiple Listing Service (MLS) was that Beazer homes was the seller in 33% of the Southwood home sales in the past 12 months. When I took into account all the new construction sales, new homes sales in Southwood represented roughly 1 in every 2 homesales. That does not bode well for a subdivision that has nearly 16 months of supply of homes on the market already.

Current

3 Months Ago

The graph on the left was created from Tallahassee MLS information about an hour before I posted this. The graph on the right was made about three months prior. Here are a few observations that I find disconcerting for people who have a home for sale in Southwood in Tallahassee:
  • Sold price per square foot has dropped at an annualized rate of 15% since March (brown shaded area in each graph)
  • Homes for Sale in Southwood have seen their average asking price drop at an annualized rate of 10% since March
  • Homes that have "Failed to Sell" have seen an average asking price drop of at an annualized rate of 8% since March
  • More homes are on the market (up 21% in just three months--> annualized rate of 85%!)
  • Fewer homes are selling (down an annualized rate of 11%)
  • Sold price per square foot is dropping, yet new homes are a larger percentage of the market
That final point is one the bears close scrutiny. If Beazer is delivering homes at a lower price per square foot than previous builders, won't that mean that resale home values are dropping as well? I will keep a close eye on Southwood and report back again in the future.

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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.


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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.

2 Responses to "Southwood In Tallahassee"

George Fergusson wrote: Joe,

It could be worse. We could still live in South Florida. The only "fall" they'll experience will be home prices. The home we sold in Delray Beach three years ago has declined more than $100,000 in market valve.
I Enjoy your Blog, George

Posted on Tuesday, July 15th, 2008 at 8:16pm.

Joe Manausa wrote: Thanks Keahi.

Thanks George, and you are very correct. Tallahassee has performed much better than most markets in Florida.

Posted on Tuesday, July 15th, 2008 at 9:03pm.

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