The average price of the homes for sale in gated communities is rapidly approaching $600,000.
Gone are the days of finding a single-family detached home in a gated neighborhood for less than $200,000, and now the least expensive one on the market is over $300K!
Today’s report examines the market for homes in gated communities, and it starts with all 28 of the properties available today.
Homes For Sale In Gated Communities
Gated Community Homes For Sale
The Average Home Price In A Gated Community
The following graph shows the average home price in gated communities (blue), the average home price outside of gated communities (red), and the average difference between the two (green, measured on the right vertical axis). Data came from the Tallahassee MLS for the months of January through July of each year.
Over the past seventeen years, homes in gated communities (on average) were 128% pricier than their counterparts in neighborhoods with no gates.
Does the green line in the graph above indicate that now might be a good year to buy a home in a gated community as the ratio between the two is lower than any prior year going back to 2009?
Before we can answer that question, we need to look a little closer at the data.
The Average Home Value In A Gated Community
The following graph shows the average home value in gated communities (blue), the average home value outside of gated communities (red), and the average difference between the two (green, measured on the right vertical axis). Data came from the Tallahassee MLS for the months of January through July of each year.
Over the past seventeen years, homes in gated communities (on average) were 32% more valuable than their counterparts in neighborhoods with no gates. So while prices were more than double, values were only a third higher for homes in gated communities. How could this be?
The Average Home Size In A Gated Community
The following graph shows the average home size in gated communities (blue), the average home size outside of gated communities (red), and the average difference between the two (green, measured on the right vertical axis). Data came from the Tallahassee MLS for the months of January through July of each year.
On average homes that have sold in gated communities have been about 74% larger than the homes sold outside of gated communities.
The latest trends show a narrowing gap between the price, value, and size of homes in gated communities versus those outside of ones with gates.
I suspect this might be an effort by builders to keep homes “affordable.” Building smaller homes, on smaller lots, allow them to sell these premium homes for less money.
Another factor is the price points for these two types of homes. With homes outside of gated communities average around $260K, this is the heart of the hottest band of demand for homes in Tallahassee. Everything under $300K is on fire.
Contrast that with homes in gated communities averaging closer to $600K. Less than 3% of today’s buyers spend this amount of money on a home, so we’re really talking “luxury homes” at this point. This price point remains in a buyers market, so we’re not seeing appreciation run rampant like we are in the lower price points.
If you plan on selling or buying a home in a gated community, ensure you work with an agent that you trust understands current market conditions so he or she can help you get you the best deal possible!
Thousands of Joe Manausa Team customers have left reviews on Google, Facebook, and Zillow. Read the Tallahassee real estate agent reviews.
