Park Charleston Housing Report December 2015

Everybody likes a shiny new home, so today’s report on Park Charleston should interest many of our readers.

Most of these homes are either new, or like-new.

You can find Park Charleston on the South side of Miccosukee Road just outside of Capital Circle Northeast. It features both attached and detached single family homes.

As we have mentioned with other boom neighborhoods, we have to be wary of pent-up supply if many of the current owners (who basically bought at the same time) need to move on similar schedules.

In this report, we will look at home prices, home values, and home sizes in Park Charleston, as well as show current listings in the Tallahassee MLS and all closed home sales going back to the beginning of sales in this popular NE Tallahassee neighborhood.

For the real estate graphs found in this report, you will find the number of closed home sales for each year (red columns, measured on the left vertical axis), and an important real estate statistic shown in blue (measured on the right vertical axis).

It is important to note that the narrative contained below is for sales through the end of December for all previous years, but through the third week of December in 2015. The graphs and the closed sales table will be continuously updated into the future (meaning bookmark this page if you always want to know the current status of homes in Park Charleston).

Home Prices In Park Charleston

Park Charleston home prices have declined nearly 5% in 2015 when compared to the average in 2014, and the three homes for sale (and currently under contract) are at prices only a little bit higher than this year’s average. Through the writing of this report, the twelve homes sold in Park Charleston averaged $247,991.

Average Home Prices

Home sales activity in 2015 has been consistent with what has transpired over the past 7 years, but at least unit sales reversed course and went higher in 2015.

Home Values In Park Charleston

In our last home sales report for Park Charleston, we noted that it would be interesting to see how (then) current sellers do in the months to come. Well, we’ve hit “the months to come,” and through many major price reductions that have occurred, they all are sold or at least under contract to be purchased.

Average Home Values

Home values were flat in 2015, which means current values are 12% lower than the market high set back in 2006. This means that most homeowners who have purchased or refinanced in Park Charleston are dealing with negative equity situations (and thus the higher than market asking prices).

Bear in mind, most of the past sales were new construction, and most of the future sales will be existing home sales. Like many others who purchased newly built homes in boom neighborhoods, Park Charleston owners likely purchased their new construction homes near the top of the market.

The average values that are being recorded now still include new construction, and we can expect to see resales sell for well below this average. A good analogy exists if you consider buying a new car, where a healthy portion of its value falls when you drive it off the lot. Similarly, we expect to see an immediate decline in value when somebody purchases a new home, as it will now be a “used” home. Couple that with a declining market and you can see why existing homeowners in a boom neighborhood will be dealing with negative equity for quite a while.