Median And Mean Home Values In Tallahassee Will Rise In 2017
If you own a home in Tallahassee, it is likely gaining value every month.
Sure, there are a few areas where this is not yet so, and there remains a glut of existing homes over $400,000 that are not making gains, but for more than 90% of the Tallahassee real estate market, home values are on the rise.
The graph above measures both median home values each month (orange dots) and average or mean home values each month (blue dots), and the one-year trend (solid lines) of each is moving higher.
Specifically, home values are moving higher at a faster rate now than we have seen since the end of 2005 when frowns and bad moods replaced irrational exuberance in our housing market.
Average Home Value Versus Median Home Value
We measure both the median and the mean home value each month in order to look for a change in trends. I've reported on this several times in the past using just MLS data on home sales, but today's post includes a much more focused set of home sales.
We have gone beyond merely using the homes sold by Realtors (MLS), we have included all (and only) existing homes sold in Tallahassee. That means we have purposely omitted new construction sales and have added non-Realtor existing home sales as well.
This will allow existing homeowners to truly gauge the changing market for "used" homes. By way of example, you wouldn't try to figure out the value of your 1994 Ford Mustang by comparing it to the 2017 models coming out today, right? And you would like to know more than just dealer sales too, correct? Well, this analysis is fairly comprehensive and provides the most accurate report on the movement of home values in the Tallahassee real estate market.
Current Home Values In Tallahassee
The graph shows that home values are on the rise. But it shows some other interesting information too.
The long yellow arrow is a simplified version of a reversion to the mean analysis suggesting that current values are lower than we would expect and thus are likely to move higher.
Supporting this is the fact that nearly all months in 2016 have been higher and very close to this expected range of values.
Additionally, the slope of the rising level of home values is getting steeper, meaning we are very likely to see a strong showing in 2017. Don't be surprised if the home you own this December is worth 10% more in December of 2017.
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