Average Real Estate Prices February 23, 2010
Tallahassee average real estate prices continue to slide, with an abundant inventory of homes creating too much competition for values to hold in 2010.
Single Family Detached Homes
Single family detached homes have seen average prices exceed $220K, but now are looking at figures below $190K in just three years.
When we look at the real estate graph above, we see the current average price trend still shows a steep decline and we are confident this must continue until the supply and demand imbalance is corrected. But that does not mean it is a “waiters” market for home buyers, as rising interest rates and ending tax credit programs will affect affordability levels more than falling prices.
Lot Sales Getting Hammered
With the end of the boom market came a deluge of residential lots that the market could not consume. Banks and investors sit holding lots, willing to sell them below what it would cost to produce them, but the market is too laden with houses to begin consumption of vacant lots. Look to see average lot prices continue to drop, with only 1/3rd the normal rate of sales this year.
Condominiums And Townhouses Average Prices Stable?
Perhaps the most intriguing part of the average real estate prices graph above is the trend line for condos and townhouses. While every other category of homes has fallen, condos and townhouses seem to be holding steady. I know from being in the market that student rental units have fallen in value like everything else, so I suspect the downtown Tallahassee market is having an affect on the average prices. We will look to study this more in the weeks and months to come.
Mobile Home Average Prices Drop Below $50K
The average price of a mobile home (and the lot it sits on) have dropped below $50,000. The amazing thing about this is that the average vacant lot price in Tallahassee is still over $70K, so it appears as if there might be a great upside to mobile home values for investors. During the last expansion phase, the City and County were all too keen to encourage the conversion of mobile home units to site built homes, and I suspect we will see that again when growth returns to the Tallahassee real estate market.