How Tallahassee Home Values Compare With The Past
Tallahassee home values moved significantly higher in 2018, the result of limited inventory combined with the intense demand from homebuyers aided by low mortgage interest rates.
Homeowners gained significant equity last year, but how do values today compare with where they were when many of today's homeowners made their purchase?
Historic Home Values In Tallahassee
The graph below plots the average price per square foot of existing home sales (resales) from 1991 through 2018.
The average value of a home sold at the end of 2018 was just under $120 per square foot.
Homeowners And Their Tallahassee Home Values
The graph shows us that homeowners who purchased their home from the end of 2005 through the middle of 2008 most likely have very little (or negative) equity in their homes.
Those that purchased in December of 2011 have seen values rise 40% through December of 2018, an excellent annualized appreciation rate of nearly 5%! For our long-term homeowners, those that purchased in December of 1990 have seen an annualized appreciation rate of 3.15%.
For those who bought their homes at the very top of the market in June of 2007 have suffered a 1.05% depreciation rate over that time. Of course, they lost more than a third of their value on the way to the market bottom at the beginning of 2012 and have been recovering since.
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Where Tallahassee Home Values Go From Here
To forecast the future of home values in Tallahassee, we need to study the relationship between supply and demand to determine which segments of our market favor sellers versus those that favor buyers.
We expect those in a strong sellers' market to see higher than normal appreciation rates, while those that are in buyers' markets will see lower than traditional appreciation rate levels, perhaps even depreciation.
Housing Supply And Demand In Tallahassee
The following table identifies the relative supply of homes for sale in Tallahassee, measured in months of supply. We consider 6.0 months of supply to be a balanced market, whereas below six is a sellers' market (not enough homes) and above six is a buyers' market (too many homes).
The table above is broken down by quadrant moving across and by price range vertically. Green shading identifies areas and price ranges where it is a sellers' market, while yellow shading identifies a buyers' market. Non-shaded areas reveal market equilibrium (no advantage to either sellers or buyers). Where you see numbers that defy the shading, you'll notice adjacent price ranges that can fill the void (this often happens when there is limited activity in an area).
It's important to note that we created the table by taking the average number of listings and the average number of sales for the past twelve months in each area and price range. By doing it this way, we remove all variances that occur due to seasonality. This table very accurately reflects the relative supply of homes for sale in Tallahassee right now.
Would you like to know what this means for your home specifically? All you need to do is give us a call at (850) 366-8917 or drop us a note and we'll be in touch right away!
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When moving to, in, or from Tallahassee, you will fare better if you work with a local expert. We are here to help. If you have further questions on the Tallahassee real estate market, you can leave a comment below, give us a call at (850) 366-8917, or drop us a note and we'll give you the local information needed to ensure a successful, smooth transaction.
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