Condo And Townhouse Prices Offer Affordability
In a recent article, we wrote about how luxury home values were not yet recovering in the Tallahassee real estate market, and today we have uncovered a similar trend with condo and townhouse prices.
We have written for years about the glut of homes for sale in Tallahassee, and the fact that we over-produced from 2002 through 2006. Today, we see a large value opportunity that buyers will have a hard time over-looking.
Tallahassee Condo And Townhouse Prices
I was looking at long-term price trends this morning and found something that buyers will definitely want to know.
In the real estate graph above, the solid lines measure the average existing house prices in Tallahassee since 1991 (no new construction, just resale homes). The red line shows the average closed home price for single family detached homes, whereas the green line shows the average closed home price for condominiums and townhouses.
When we plot a progression of home prices from the 1990s, it is easy to see the housing market bubble on the graph, and it also identifies a significant difference in prices when we go from single family detached houses to condominiums and townhomes.
Notice how the solid red line is now back on the dotted red line. This means that buyers are spending the amount of money we would have forcasted back in the 1990s (a simplified regression to the mean for you math-types).
But the solid green line is still well below our forecasted condominium and townhouse prices, meaning that buyers can still get these homes at prices more than 20% below what we would have expected. Some might say that there is much more up-side potential when buying a condominium or a townhouse today than when buying a single family home.
While there are some great deals in the market today for condominiums and townhouses, I would not use this information to bless the prices of all condominiums and townhouses. This is merely a market overview, and you should work with a professional buyer's agent if you want to get the best deal in the housing market today.