How To Determine Real Estate Appreciation (or Depreciation)
|Home Location||PreviousSale Price||Recent Sale Price||PreviousSale Date||RecentSale Date||Annual Appreciation Rate|
|Hill Gail Trail||$195,900||$200,000||12/9/2005||5/12/2008||0.86%|
|Ivy Green Trail||$265,000||$290,000||11/8/2004||5/19/2008||2.59%|
|Meadow Ridge Drive||$195,000||$400,000||6/3/1994||5/29/2008||5.27%|
|Man O War Trail||$78,800||$175,000||3/3/1993||5/12/2008||5.39%|
|Hill 'N Dale Street||$80,000||$180,000||12/2/1991||5/2/2008||5.06%|
The average annual appreciation rate in this group is about 4% (3.97%). Anything purchased in 2005 or more recently in this group has depreciated. Any home purchased in 2004 or prior has appreciated. I suspect this means that properties were appreciating over time until the market peaked in 2005. Since then, the market has "taken some back." If you purchased your home recently, it might be worth less than you paid. However, if you purchased it prior to 2005, most likely is still is worth more than you paid.
Take a close look at the home on Buckeye trace (it is listed twice in blue). It was sold after being purchased in 2007 and it was sold for 3% less than it had been purchased. But the prior owner, who owned it from 2004 to 2007, had an annual appreciation rate of 12.5%. The previous owner had perfect market timing, hitting the best two years of real estate appreciation that the Tallahassee real estate market has seen since I began measuring in 1991.
Most likely this data is too small of a sample to be absolute “proof” of anything, I would suspect these kind of numbers to hold true for the entire market. Home values peaked in 2005 and we are now seeing real estate depreciation in the Tallahassee real estate market.
If you would like to see the full Tallahassee Real Estate Market Report, just following the link to 12 new and updated color graphs.
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