Fewer Distressed Homes For Sale Results In Accelerated Appreciation For Homeowners
In case you missed our Weekly Special Real Estate Report on current appreciation rates, you should check it out.
It shows fewer distressed listings (shown below) are resulting in soaring real estate appreciation rates.
Distressed Homes For Sale
The finding of the report is quite clear. With fewer of these distressed homes for sale, Tallahassee homeowners are now enjoying SOARING appreciation as the number of buyers in the market continues to rise.
We encourage all buyers to shop distressed properties here on the Joe Manausa Real Estate site, as they are truly available (unlike most national sites that do not have a complete inventory and often add homes that are not available in order to capture more visitors.
Health Of Market Varies By Region
The following real estate graph shows all active listings for sale in Tallahassee, broken down by listing type and region.
The green bars measure the number of arms-length home sellers, while the red bars show the number of distressed home sellers, both recorded on the left vertical axis.
The resulting ratio of distressed property listings to all listings is shown as a red line and reported on the right vertical axis.
Clearly, the south side of town is trailing all others, and the west side of town has a relatively high number of distressed homes too. Considering that nearly 80% of all home sales occur on the north side of town, one can understand why it is clearing up faster than anywhere else.
I suspect a lot of the problems on the south and west side of town relate to the changes occurring in the student multi-family market, where the 5,000+ new units have been drawing tenants away from the single family detached (and attached) student rentals that had hosted them for the past ten years or so. As these rentals return to the market as "for sale" listings, the number of buyers are scarce.
Real estate investors still have an unbalanced market, where far more supply than demand exists, thus many of these properties are ending up as distressed sales.
The Impact Of Distressed Properties In Tallahassee
The number of distressed properties for sale for the past ten plus years has made it very difficult for arms-length home sellers to move.
Home values had dropped so much that many homeowners were "trapped" in homes that had greater debt than the value of the homes. But with rapid appreciation like we are seeing in the market now, more and more home sellers are free again to move.
As we continue to see the number of distressed properties decline, expect to see a strengthening buyer pool that will soon resemble the healthy markets that we saw prior to the run-up to the housing bubble twenty years ago.
Homeowners who have purchased in the past four years are gaining equity at a wonderful pace and we are helping people sell their homes and "get checks" instead of "give checks" at closing.
How To Navigate A Market Still Dealing With Distressed Homes
The key to getting top dollar for your home when you sell is the same as the key to ensuring that you get the best deal when you buy.
In both cases, you need to ensure that you employ a team of specialists with proven skills that will work to ensure you achieve your goals. The specialists who help you sell are different than those who help you buy (otherwise, are they specialists?), and your choice will end up saving (or costing) you tens of thousands of dollars or more when you move.
If you are thinking about moving in near future, simply drop us a note and let us know whether you are selling, buying, or both, and we'll have the right specialist reach out to you to schedule a time to put you on the path to success. It's the little things that you do in preparation that often times results in big savings, and its never to early to plan.
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