Recently, somebody asked me how home sales in Northeast Tallahassee are holding up. I explained that this part of the Tallahassee real estate market accounted for roughly one half of the home sales (49% over the past twelve months) and was performing stronger than the other three quadrants of Leon County.
Just a reminder, you can subscribe to the Tallahassee Real Estate Newsletter (free) in the right sidebar of the Tallahassee Real Estate Blog. This monthly newsletter provides analysis of the housing market with charts and graphs to support the findings.
The best starting point when analyzing an area or subdivision in the Tallahassee housing market is to look at current supply and demand of homes.
Supply And Demand For Northeast Tallahassee Real Estate
The real estate chart above shows that the relative supply of homes for sale in Northeast Tallahassee is 11.5 months, which is good and bad. It’s good that supply has continued to fall, it’s good that supply is about 2 months lower than the average in the entire Tallahassee real estate market, but it is bad that Northeast Tallahassee home supply is nearly double the amount required for a balanced market (6 months of supply).
The over-supply of homes suggests that we will continue to see Northeast Tallahassee home prices continue to decline until supply and demand are balanced.
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Northeast Tallahassee Average Home Prices
While the number of home sales in Northeast Tallahassee has dropped by more than 50%, the average price has only come down about 8%. The drop in average home prices is much lower than the rest of the Tallahassee housing market, though this could be more of a reflection on how much home buyers can afford than a reflection on real estate depreciation.
Northeast Tallahassee Home Sizes
In line with real estate depreciation, it appears as if 2009 is showing the largest average home size being sold over the past 19 years. So even though average prices are dropping, the homes being purchased are larger (on average). This suggests that our depreciation rate is larger than our value change rate.
Northeast Tallahassee Home Values
When we look at the price per square foot of homes sold in Northeast Tallahassee, we see that values have dropped 13% since the peak of the market (which actually occurred in 2007). A very important observation can be found in this home value graph. Note that while home sales were plumetting in 2006 and 2007, home values continued to rise.
This apparent lack of awareness by the market is normal, and we should expect to see a similar action at the bottom of the market. So even as the number of home sales in Northeast Tallahassee start to rise, we will continue to see falling prices as the supply and demand relationship comes into balance. Only once scarcity returns to the market will we start to see home values appreciate in Northeast Tallahassee.
Pay Attention To Supply And Demand In The Housing Market
The best way to stay abreast of your home value trend is to look at our Monthly Home Inventory Report. Each month we post updates in the right sidebar of the Tallahassee Real Estate Blog, so there is no reason to be unsure of current market trends.
Recent Home Sales In Northeast Tallahassee
| Northeast Tallahassee Subdivision | Northeast Tallahassee Address | Sale Date | Size | Price | |||||
| VILLAGES OF MACLAY T/H | 1337 OLD VILLAGE RD | 10/30/2009 | 1,530 | $194,500 | |||||
| MAUNDS ESTATES | 603 MCDANIEL ST | 10/29/2009 | 1,673 | $131,900 | |||||
| PINEY-Z | 1022 HIGH MEADOW DR | 10/29/2009 | 1,908 | $212,000 | |||||
| WEEMS PLANTATION | 3494 LANDS END LN | 10/28/2009 | 1,372 | $183,000 | |||||
| ARBOR HILL | 2628 VASSAR RD | 10/27/2009 | 1,248 | $80,000 | |||||
| WEEMS PLANTATION | 3472 BARNSTAPLE DR | 10/27/2009 | 1,471 | $167,500 | |||||
| COUNTRY WALK | 4846 LIMOGES DR | 10/27/2009 | 2,111 | $231,000 | |||||
| BUCKWOOD CLUSTER | 4305 BENCHMARK TRCE | 10/23/2009 | 1,315 | $128,000 | |||||
| KINHEGA LANDINGS | 10515 WINTERS RUN | 10/23/2009 | 1,865 | $220,000 | |||||
| CHATEAU LAFAYETTE TOWNHOMES | 3374 TANSEY CT | 10/22/2009 | 1,308 | $129,000 | |||||
| ARVAH BRANCH | 1977 BUSHY HALL RD | 10/22/2009 | 1,831 | $196,000 | |||||
| 31-01N-01E | 513 E CALL ST | 10/22/2009 | 3,028 | $260,000 | |||||
| PINEY-Z | 1067 KINGDOM DR | 10/21/2009 | 1,479 | $178,000 | |||||
| GRAMERCY PLACE | 3283 GRAMERCY PL | 10/21/2009 | 1,827 | $239,900 | |||||
| KILLEARN LAKES | 8633 OAK FOREST TRL | 10/20/2009 | 1,293 | $100,000 | |||||
| 30-01N-01E | 1565 PAYNE ST | 10/19/2009 | 1,144 | $150,000 | |||||
| 17-02N-01E | 7106 ED WILSON LN | 10/19/2009 | 2,353 | $170,000 | |||||
| MEADOWBROOK | 700 VIOLET ST | 10/19/2009 | 1,781 | $200,000 | |||||
| FOREST COMMONS | 3520 SEDONA LOOP | 10/16/2009 | $112,000 | ||||||
| BRIAR CHASE | 2949 ALEXIS LN | 10/16/2009 | 1,469 | $179,900 | |||||
| Showing 20 of 105 historical records. Full archived data available on request. | |||||||||
