Have Lot Sales In Tallahassee Bottomed?
Residential lot sales in Tallahassee have mirrored the rest of the residential real estate market. Unit sales are down off their highs and prices have fallen. Since January of 1991, Tallahassee has averaged over 180 residential lot sales per month, but the current trend is down near 50 per month.
The good and bad news about residential lots in Tallahassee is that they really only have 1 purpose. People buy lots to build a home upon. If there is a demand for housing in Tallahassee, then so too shall their be a demand for lots. Currently, the opposite is true.
Demand for housing in Tallahassee is at least at a 20 year low, so lot sales have fallen off. But what will happen to lot sales when the market stabilizes?
Tallahassee Lot Sales Appear To Have Bottomed
The number of residential lots being sold each month appears to have bottomed, but time will tell. The declining trend ended in December of 2008, and we now have to see how long the floor will last.
The average price trend has fallen from nearly $120K per residential lot to just over $70K per lot, and I suspect there is a good bit more reduction that will occur, as foreclosures and short sales settle in the market. The real estate graph below show the monthly sales trend and average lot prices in Tallahassee for nearly 20 years.
Long Term Outlook Strong For Residential Lots
I think our economy has a whole lot of problems right now and things are going to be tough for a while. But ultimately, I still believe that Florida is going to be a destination State, and Tallahassee will continue to grow. Most economists that study the Tallahassee economy have predicted a 1% growth rate over the next ten years.
Regardless of the rate of growth, if Tallahassee is growing, we will be consuming more residential lots. The ones that have better access to the amenities in Tallahassee (location, location, location) will sell at a higher price than those that are in less serviceable areas.
Finally there is the cost issue. The cost to produce a residential lot is very high. With impact fees rising and labor costs rising, I just don't see how we will produce residential lots (in the future) for less than $50K per lot. Sure, we will see some liquidation of lots already produced, but when they are consumed, I think Tallahassee lot and land prices will be just like everywhere else in the country. Expensive.
|Subscribe in a reader||Subscribe by email|
As a reminder for those who subscribe to the Tallahassee Real Estate Blog by email, some embedded pictures and videos might not be appearing in your email and you might need to click the title header to go to your browser where all will be visible. Additionally, if you would like to respond (leave a comment) to this article, you will need to “click through” to the blog site to post your feedback.
If you like this Article then please subscribe to my blog through a full RSS feed, or you can Subscribe by Email.You will be able to stay informed about the happenings in the Tallahassee Real Estate Market.
Please Do Us A Small Favor
We work very hard to produce daily content for our long-time readers and first-time visitors. We provide this information for free, hoping to earn your respect and trust and the right to one-day help you when selling or buying a home. Can we get your help spreading the word about our blog?
If you like the content, would you please like it or share it using the Facebook button at the beginning of the post? This simple action will be greatly appreciated! THANK YOU!
Also like us on Facebook at https://www.facebook.com/joemanausarealestate/
Joe Wrote The Book On How To Sell A Home Today
WARNING: The Internet & digital marketing systems have changed the way sellers need to market a home for sale. It's not about getting a home sold anymore, it's about getting a home sold and netting the most money from the sale.
To do this, a seller needs to hit the digital market hard in a coordinated effort that alerts ready-buyers (all at the same time) to ensure buyers understand they are competing for the right to buy the home.
While it only takes ONE buyer to sell a home, it takes MULTIPLE BUYERS for the seller to bid the property up to its highest value in today's market. You see our full explanation about how to sell a house here, or you can buy the book and really get into the nuts and bolts of selling a home in the digital age.
Get the book that explains it all, in a manner that is understanding to all, even technology neophytes. It's available on Amazon, a trusted source for consumers.
Think all REALTORS are alike?
Read what people are saying about working with Joe Manausa Real Estate! You can see thousands of real customer reviews reported on Google, Facebook and Zillow at this link: CLICK HERE FOR REAL ESTATE AGENT REVIEWS.