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New Construction Competition Finally Falls For Southwood Homes

There is an interesting trend occurring with Southwood homes these days, and long-time readers of the Tallahassee Real Estate Blog might remember our Southwood forecast last year anticipating this very thing.

When we look at the real estate graph to the upper right, we see (blue bars) that year-to-date sales of Southwood homes is at an all-time low. The continued new construction from the past few years has finally reached a point where land values and new construction prices are at odds.

The Declining Value Of Southwood Homes

For years, the developer has been liquidating lots at low prices, allowing builders of Southwood homes to continue to bring new construction to compete with the homes for sale in Southwood at prices below existing home sale values.

We have seen the number of Southwood homes on the rise, even as the overall housing market saw demand continue to slide. People were excited to buy new homes cheaper than existing ones, so Southwood was able to keep the streak running. But something has changed.

Sales Of Southwood Homes

Over the past three years, roughly one third of all sales of Southwood homes have been new construction. You can see (red line) in the graph above, it was because these homes could be delivered to the market at values below existing home sales (blue line), but that is no longer the case.

If the developer wants to see new construction continue to flourish, lot prices will need to come down even more (thus reducing the value of the land beneath all existing homes in Southwood).

Currently, the average size of new Southwood homes is 2,073 sqft, and they are selling for nearly $28 per square foot higher than the resale market. This is why we see the sale of new Southwood homes moving so much slower now than in previous years.

If we multiply the size and value differential, the developer must consider reducing land values by $57K per lot in order to continue the stimulus of sales of new Southwood homes, and I suspect this would bring land values very close to zero!

In other words, existing owners of Southwood homes can finally expect to see diminished competition from new home sales.

Rising Count Of Distressed Southwood Homes

As with the rest of the Tallahassee real estate market, Southwood is seeing a rise in distressed home sales.

I am going to keep an eye on Southwood, as I believe they are going to have to deal with a higher volume than many other areas that were not building over the past three years. These new home buyers that find themselves needing to sell in the next five years are not going to be happy with their negative equity situation.

Distressed Southwood Homes

If you need to sell a home in Southwood, it is imperative that you do a thorough analysis of your competition so that you don't lose time or focus in your marketing plan.

Home values are still declining, thus hitting the market as the right price will allow you to sell for top dollar, whereas missing the right price will cause you to waste time (and then have to reduce to newer, lower values).

If you would like to know more about selling your Southwood home, just drop me a note and we can schedule a time to discuss your specific situation and needs.

Recent Sales Of Southwood Homes

Address Sales Price Price/SQF Closing Date Year Built SQF Type
3756 OverlookDrive $398,000 $123 8/31/2012 2012 3,236 Arms Length
4010 S Blair Stone Road $175,002 $99 8/30/2012 2005 1,760 Distressed
4078 Four Oaks Boulevard $165,000 $108 8/29/2012 2007 1,521 Arms Length
3249 Thoreau Avenue $292,500 $124 8/27/2012 2005 2,368 Arms Length
3741 Esplanade Way $215,000 $121 8/24/2012 2003 1,782 Arms Length
3174 Coneflower $180,700 $109 8/24/2012 2009 1,656 Distressed
3192 Nathaniel Trace $314,900 $157 8/20/2012 2012 2,007 Arms Length
3156 Nathaniel Trce $269,900 $149 8/17/2012 2011 1,809 Arms Length
3222 Salinger Way $319,900 $124 8/17/2012 2005 2,580 Arms Length
2492 Lantana Lane $255,400 $106 8/16/2012 2007 2,402 Arms Length
3987 Four Oaks Blvd $150,000 $101 8/10/2012 2001 1,483 Arms Length
3252 Whitman Way $320,000 $116 8/10/2012 2005 2,764 Arms Length
4275 Raleigh Way $203,000 $98 7/31/2012 2006 2,067 Distressed
3005 Dickinson Drive $225,000 $126 7/31/2012 2005 1,782 Arms Length
4235 Raleigh Way $200,000 $139 7/31/2012 2006 1,444 Arms Length
3751 Overlook Dr $365,000 $134 7/27/2012 2003 2,726 Arms Length
3809 Piney Grove Drive $262,000 $116 7/27/2012 2003 2,250 Arms Length
3163 Nathaniel Trace $302,404 $151 7/20/2012 2012 2,007 Arms Length
3171 Mulberry Park Blvd. $155,000 $89 7/13/2012 2002 1,744 Distressed
2471 Goldenrod Way $250,000 $135 7/13/2012 2012 1,850 Arms Length
4032 Shady ViewLane $248,000 $122 6/29/2012 2004 2,027 Arms Length
3608 Biltmore Avenue $175,000 $107 6/27/2012 2006 1,633 Distressed
3910 Shumard Oak $155,000 $102 6/25/2012 2010 1,521 Arms Length
3008 Dickinson Drive $380,000 $103 6/25/2012 2007 3,691 Arms Length
3246 Belle Meade Trail $385,000 $107 6/20/2012 2007 3,612 Distressed
3254 Stanhope Drive $223,000 $99 6/18/2012 2003 2,250 Distressed
4024 Colleton Court $118,000 $89 6/14/2012 2003 1,324 Distressed
4290 Park Crossing Trl $125,000 $83 6/11/2012 2005 1,511 Distressed
4260 Summertree Dr $220,000 $110 6/8/2012 2006 1,997 Distressed
3690 Biltmore Avenue $175,000 $110 6/1/2012 2005 1,584 Distressed
4085 Faulkner Lane $455,100 $145 5/23/2012 2011 3,134 Arms Length
2471 Goldenrod Way $289,000 $142 5/23/2012 2012 2,036 Arms Length
3725 Riverton Trail $161,500 $106 5/22/2012 2008 1,521 Arms Length
3562 Four Oaks $208,000 $117 5/11/2012 2005 1,780 Arms Length
3082 SurratLane $414,000 $151 5/11/2012 2012 2,748 Arms Length
3124 Mulberry Park Blvd $280,000 $124 5/1/2012 2002 2,250 Arms Length
3665 Mossy Creek Lane $650,000 $130 4/27/2012 2002 4,990 Arms Length
3665 Longfellow Road $170,000 $107 4/27/2012 2004 1,584 Arms Length
3218 Salinger $450,000 $143 4/16/2012 2007 3,153 Arms Length
3570 Strolling Way $279,709 $155 4/16/2012 2011 1,809 Arms Length
4114 Faulkner Drive $335,000 $131 4/9/2012 2012 2,555 Arms Length
3558 Four Oaks Blvd $157,000 $89 4/6/2012 2005 1,760 Distressed
3769 Piney Grove Drive $247,850 $130 3/31/2012 2002 1,905 Arms Length
3095 Dickinson Drive $444,000 $130 3/30/2012 2011 3,412 Arms Length
2500 Twain Drive $275,000 $126 3/29/2012 2006 2,184 Distressed
3258 Belle Meade Trail $507,310 $103 3/29/2012 2005 4,940 Distressed
3753 Four Oaks Boulevard $262,000 $122 3/23/2012 2002 2,156 Arms Length
3262 Salinger Way $320,000 $124 3/19/2012 2004 2,580 Arms Length
3757 Esplanade Way $184,000 $114 3/15/2012 2003 1,620 Arms Length
3740 Biltmore Avenue $205,000 $127 3/6/2012 2004 1,620 Arms Length
3157 Mulberry Park Boulevard $120,000 $91 3/2/2012 2002 1,324 Distressed
2558 Twain Drive $333,500 $136 2/15/2012 2011 2,450 Arms Length
3178 Coneflower Drive $267,000 $118 1/31/2012 2008 2,260 Arms Length
3578 Strolling Way $278,800 $154 1/31/2012 2011 1,809 Arms Length
2565 Twain Drive $542,500 $122 1/27/2012 2008 4,456 Distressed
3103 Dickinson Drive $323,500 $122 1/20/2012 2012 2,657 Arms Length
2448 Rain Lily Way $233,900 $135 1/19/2012 2011 1,738 Arms Length
3797 Piney Grove Drive $249,000 $106 1/5/2012 2003 2,344 Arms Length
3614 Strolling Way $284,900 $142 12/31/2011 2011 2,005 Arms Length
2110 Fernleigh Drive $190,000 $117 12/30/2011 2003 1,620 Arms Length
3102 Dunbar Lane $357,000 $128 12/30/2011 2011 2,800 Arms Length
4388 Grove Park Drive $198,000 $125 12/29/2011 2005 1,584 Arms Length
3151 Nathaniel Trace $292,400 $139 12/23/2011 2011 2,100 Arms Length
3162 Dunbar Lane $527,500 $119 12/20/2011 2008 4,430 Distressed
4290 Avon Park Circle $143,000 $108 12/14/2011 2004 1,324 Arms Length
3610 Strolling Way $274,500 $152 12/9/2011 2011 1,809 Arms Length
2405 Goldenrod Way $284,900 $142 12/8/2011 2010 2,005 Arms Length
3143 Nathaniel Trace $304,700 $143 12/8/2011 2011 2,124 Arms Length
3598 Strolling Way $291,340 $161 12/2/2011 2011 1,809 Arms Length
3658 Mossy Creek Lane $825,000 $129 11/30/2011 2006 6,377 Distressed
3406 Mossy Creek Road $319,000 $139 11/18/2011 2011 2,288 Arms Length
3736 Overlook Drive $420,000 $132 11/15/2011 2006 3,189 Arms Length
3767 Overlook Drive $475,000 $128 11/15/2011 2006 3,718 Arms Length
3618 Strolling Way $249,900 $147 11/15/2011 2011 1,700 Arms Length
4300 Four Oaks $156,000 $101 11/10/2011 2010 1,551 Arms Length
3256 Carollton Drive $225,000 $112 11/9/2011 2004 2,005 Arms Length
3108 Mist FlowerRoad $245,000 $112 11/8/2011 2008 2,181 Arms Length
3765 Esplanade Way $242,000 $126 11/4/2011 2003 1,919 Arms Length
2417 Goldenrod Way $309,000 $112 11/2/2011 0 2,767 Arms Length
3304 Calumet Dr. $150,000 $106 10/31/2011 2006 1,416 Distressed
4117 Beckett Road $249,260 $105 10/25/2011 2005 2,368 Distressed
3586 Strolling Way $309,900 $148 10/21/2011 2011 2,100 Arms Length
3562 Strolling Way $306,000 $146 10/15/2011 2011 2,100 Arms Length
3721 Riverton Trail $155,000 $102 10/14/2011 2008 1,521 Arms Length
3815 Overlook Drive $205,000 $107 10/14/2011 2002 1,919 Distressed
4632 Grove Park $468,000 $177 10/14/2011 2011 2,645 Arms Length
4146 Faulkner $442,500 $146 10/14/2011 2008 3,037 Arms Length
3762 Longfellow Road $300,000 $125 10/12/2011 2011 2,400 Arms Length
4654 Grove Park $549,000 $174 9/30/2011 2006 3,150 Arms Length
3154 Dunbar Lane $565,000 $168 9/30/2011 2009 3,368 Arms Length
3258 Thoreau Avenue $300,000 $148 9/30/2011 2006 2,027 Arms Length
4009 Colleton Court $111,790 $84 9/29/2011 2002 1,324 Distressed
3206 Mossy Creek Lane $332,000 $120 9/29/2011 2011 2,767 Arms Length
3725 Overlook Drive $367,000 $146 9/26/2011 2003 2,521 Arms Length
3602 Strolling Way $347,947 $147 9/2/2011 2011 2,362 Arms Length
4014 Blairstone Road $199,900 $111 8/25/2011 2005 1,794 Distressed
3044 Dickinson Drive $670,000 $138 8/25/2011 2008 4,864 Arms Length
4043 Swift Way $185,000 $126 8/25/2011 2004 1,474 Arms Length
4100 Raleigh Way $222,500 $109 8/19/2011 2006 2,045 Distressed
3790 Piney Grove Drive $275,000 $103 8/12/2011 2006 2,664 Distressed
3626 Strolling Way $311,211 $148 8/8/2011 2010 2,100 Arms Length
4252 Raleigh Way $205,000 $99 8/2/2011 2006 2,073 Distressed
3789 Longfellow Road $519,000 $136 8/1/2011 2006 3,825 Arms Length

I hope this report on Southwood homes has provided you the information that you sought, if not, just comment below and let us know what else we can provide.

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