The new numbers are in for home sales in the Tallahassee real estate market, and unfortunately there is little good news to be gleened from the reports. Average prices are still dropping, unit sales are still dropping, and year-over-year home sales just posted the 36th consecutive month of declining home sales.
One of the most important trends that we can watch is the year-over-year home sales report. This real estate graph is created by comparing each new month with its corresponding month in the previous year. So June of 2009 was compared to June 2008, June 2008 compared to June 2007, etc.
If you look at the following graph, you will see that we just posted 36 straight months of declines. Statistically, this is unthinkable. Nowhere else on this graph can you see a run, whether positive or negative, exceed 9 consecutive months.
36 Consecutive Months of Home Sales Declines In Tallahassee
If there is one positive result above that we can claim for June, it is the fact that Tallahassee home sales in June of 2009 were "only" down 13% compared to June of 2008. With recent declines in the high twenties and mid thirties, this makes me think we might be on pace to find the bottom of the market by the end of November of this year (see previous reports on the bottom of the Tallahassee housing market).
Average Real Estate Prices Continue To Fall In Tallahassee
Another real estate graph pulled from the recent Tallahassee housing report shows that our average real estate prices continue to fall.
The red line shows single family homes have trended below $200K for the first time since 2005, townhomes in green have dropped below $150K for the first time since 2006. The yellow line shows the continued declining trend of lot prices back to their mid $70K levels from 2005, while mobile home prices are fairly stable near their highs from 2008, coming in near the mid $50Ks.
We will cover the June housing report in great detail in the upcoming Tallahassee Real Estate Newsletter. If you have not subscribed, it's easy to do and takes about 15 seconds. You can just enter your email address in the form in the sidebar to the right.
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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.