Mobile Homes Report February 28, 2010
Tallahassee mobile homes have decreased in both price and unit sales, just like the rest of the housing market. I believe it is important to keep a vigilant eye on this entry level of the housing market, as tough economies and elevated land prices make mobile homes a viable housing solution for many people around the country.
The first thing that always hits me when I look at the Mobile Homes Sales Graph below is that the cost of a mobile home (meaning the unit plus the land beneath it) is still trending lower than the average cost of a vacant lot in Leon County! This has always struck me as an investment opportunity for long-term value investors.
In the graph above, the red area shows the number of mobile homes sold (monthly average) over the past 19 years. Currently, mobile homes sales account for less than 20 units each month, while average prices have dropped below $50,000, which is similar to prices achieved at the end of 2004.
Overall, the average price trend show the great long-term appreciation that value investors are seeking, and monthly rent ratios are far superior to stick-built properties. Finally, because these homes are at the entry-level of the market, occupancy levels can be kept very high with proper management. The combination of appreciation, market position, and rent ratios equals opportunity, and this is why I continue to monitor mobile homes sales in Tallahassee.
Great Tallahassee Real Estate Resources
Do you want to know more about the Tallahassee real estate market? The following are some of the best resources that you can find on Tallahassee real estate:
- Daily Real Estate Blog (A Technorati Top 100): Tallahassee Real Estate Blog
- Current Housing Reports: Housing Market Reports
- Map Based Property Search Tool: MLS Property Search
- Foreclosure Reports: Lis Pendens and Foreclosures
- List of Distressed Properties in the MLS: Distressed Properties
- REALTOR® news and updates: Successful REALTORS®