High-End Market Update For Tallahassee Real Estate
Every so often, I like to look at different segments of the Tallahassee real estate market. I wrote a blog on the "Tallahassee Upper End" back in September of last year. Back then, I reported that there was over two years' supply of homes over $700,000 in our MLS. (See Red Line Below) Graph From September 2007 So how is that segment of the Tallahassee real estate market doing now, six months later? Inventory has grown to nearly 30 months of supply, but believe it or not, the upper end market has been growing, so anyone who prices their home competitively should expect to see fairly steady traffic through their home. While such high inventory in this price range is not great news, it is good to know that homes are continuing to sell in the upper end. In this first chart, we see that the "Over $700K" market has been growing over the past eight years. It wasn't long ago (2000) that we would only see one or two sales in this price range in the MLS each year. Last year, even though it was a down year, we averaged over 3 sales per month in excess of $700,000!
Now, the next chart shows the time of year the sales typically occur. It's nice to see that they are spread-out and happen year round, but we can see the strongest trend is for these homes to close in the summer months. This chart is very busy, but with some study, I'd like you to see:
The highest amount of closings each year seem to occur in June through August or in December
The Black Triangle represents the time a home owner has right now (arrow pointing to today) to get the home sold. This is a short market-time for such a low turnover price range, so I would recommend a high-end homeowner hit the market with the best price. Remember, there are over two years worth of supply out there.
Working backwords on time frames, a July closing requires a May contract. That means we are dealing with just over three months of market time. Based upon last years numbers, only 10% of the current $700K+ homes on the market will go under contract during that time.
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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.