Searching For Luxury Lots In Tallahassee
One of the harder real estate sales in Tallahassee to track is lots (homesites). Often times, homesites are sold in bulk, so there is only 1 resulting sale in the tax records, but it might represent tens or even hundreds of Tallahassee home lot sales.
We can use the Tallahassee MLS, but the REALTOR® MLS does not contain the majority of lot sales, so the data is only a glimpse of what is really going on in the Tallahassee lot sales market. So I think the best way to do this is to use a combination of data sources as well as analyze the future potential use of the homesites themselves.
Yesterday, we had a comment from a reader (Buddy) who wrote:
Buddy raises several important questions that I think we can put a good estimate to with the right analysis.
Tallahassee Lot Sales Recorded In Leon County
We have been tracking recorded lot sales in Leon County, Florida since the beginning of 1991. For quite some time, average lot prices in Tallahassee did not move around very much, but the glut of lots that was the result of the Comprehensive Land Use Plan in the 1980's was consumed by 2000, and land prices took off.
This real estate graph shows the one-year trend in both unit sales as well as average price, and we now see that the average price of a residential building lot in Tallahassee is still above $70K. Unit sales have plummeted with the rest of the real estate market, but lot sales have been showing an apparent bottom for the last six months or so.
This data comes from the Leon County Tax Appraisers data on recorded sales, so it is the most accurate and most complete data set that we can use. But it does not show us anything about current supply, so for that we must use what is available from the Tallahassee MLS.
Tallahassee Lots Supply And Demand In The MLS
This next chart comes from information pulled from the Tallahassee Board of REALTORS® Multiple Listing Service (Tallahassee MLS). All active residential lot listings were pulled, as well as all lot sales over the past twelve months. The amount of supply, based upon current demand, is significant.
| Low | High | Listed | Sold | Months Supply |
| $0 | $40,000 | 102 | 29 | 42 |
| $40,000 | $80,000 | 126 | 32 | 47 |
| $80,000 | $120,000 | 146 | 17 | 103 |
| $120,000 | $160,000 | 118 | 10 | 142 |
| $160,000 | $200,000 | 77 | 9 | 103 |
| $200,000 | $240,000 | 24 | 4 | 72 |
| $240,000 | $280,000 | 24 | 1 | 288 |
| $280,000 | $320,000 | 21 | 2 | 126 |
| $320,000 | $360,000 | 11 | 2 | 66 |
| $360,000 | $400,000 | 64 | 4 | 192 |
| Total | 713 | 110 | 78 |
If we could rely on the data from the Tallahassee MLS, we would conclude that there is over 6 years of supply of lots in the Tallahassee real estate market. For lots with a value greater than $160K, but less than $400K, there is just over 10 years supply. Fortunately for Buddy, we do not necessarily believe this to be accurate.
Luxury Home Site Demand In Tallahassee
So how do we determine the real demand for luxury home sites in Tallahassee? The only correlated supply and demand data is in the Tallahassee MLS, but we are confident that this data is insufficient to draw any real market conclusions. The information in the tax records shows historic sales, but there is no supply-side data with which this data can be compared. But what if we took another approach ...
I suspect that if we can look at the current supply and demand relationships for luxury homes, we can develop an idea for the future demand of these homes, and thus the future demand for the luxury lots that lie beneath them. If you downloaded the updated Tallahassee Home Inventory Report, then you would be able to see that demand will most likely be less than 10 years.
What the real estate chart information above shows is a two to four year supply of homes in the price ranges that these luxury home sites would produce. If you are a regular reader of the Tallahassee Real Estate Blog, then you will know that our current rate of demand is less than 1/2 of what is considered normal. This means that as demand returns, these supply amounts will be halved rapidly. We still have several years worth of homes in the shadow inventory that is waiting in the wings as well, but I suspect demand for home sites at all price ranges will return in 4 to 8 years.
Current Tallahassee Residential Lot Demand Is Non-Existent
To answer Buddy's final question, is there a "tipping point," I would have to say no. Our supply of homes it too high all the way across the board, so I do not believe that lots at any price are going to sell until we see the reduction of the current home inventories, in all price ranges. The key to lot owners is to hold on if you can, because the cost to develop is only rising. Even as the state of the economy worsens, it is not easier nor cheaper to bring a residential home site to the market.
Good Time To Buy A Luxury Lot In Tallahassee?
If you are thinking of building the luxury home in 5 to 10 years, now might be a smart time to go out and look for the perfect luxury home site. They are plentiful and you might be able to make a very savvy investment, plus secure the "perfect" place for your future home. With the state of the current housing market, I suspect there are developers like Buddy who would consider a creative sales solution that would get you in a luxury lot for very little interest or low money down.
A lot of the initial home owners in Golden Eagle Plantation had been land speculators who bought their lots during a tough market. When they went to build on them five to ten years later, these same lots were selling for as much as 500% more than they had payed. The key is to find a place where you would love to live and see if you can get it at a great price in today's market.
Recent Lot Sales In The Tallahassee MLS
| Area | Address | Price |
| SE-03 | 1974 Midyette | $2,070,000 |
| NE-01 | XXX Vason Lane | $660,000 |
| SE-03 | 0 WOODVILLE HIGHWAY | $405,000 |
| NE-01 | Lot 21 ROSEHILL DR W | $380,000 |
| NE-01 | Lot B16 Lake Pisgah Drive | $350,000 |
| NE-01 | Lot 17B Lake Pisgah Drive | $325,000 |
| NW-02 | 1806 Belle Vue Way | $315,000 |
| NE-01 | Lot B16 Lake Pisgah Drive | $300,000 |
| NE-01 | 9015 Magnolia Hill Dr | $275,000 |
| NE-01 | 1333 Rachel | $230,000 |
| NE-01 | 9342 Lilly Baker Lane | $230,000 |
| SE-03 | 3614 Mossy Creek Lane | $229,900 |
| NE-01 | R3 Quail Call Drive | $225,000 |
| NE-01 | G1 Pine Fair Way | $185,000 |
| NE-01 | 0 ELLICOTT | $185,000 |
| NW-02 | XXX Nelly Lane | $183,350 |
| NE-01 | 0 Thomasville Road | $175,000 |
| NE-01 | 0 Thomasville Road | $175,000 |
| NE-01 | 14036 Godbold Road | $175,000 |
| SE-03 | 3591 Mossy Creek | $170,850 |
| NE-01 | S5 Broomsage Place | $165,000 |
| NE-01 | XXXX Anhinga Farms off of Centerville Road | $160,000 |
| SE-03 | Lot 3 Grove Park | $158,000 |
| NE-01 | S4 Broomsage Place | $155,000 |
| SE-03 | 00 Natural Bridge Road | $150,000 |
| NE-01 | 5724 Farnsworth Dr | $135,000 |
| NE-01 | xxxx Whitetail Pass | $135,000 |
| NE-01 | Lot 17 Rael Court | $131,000 |
| SE-03 | 3614 Mossy Creek Lane | $130,000 |
| NE-01 | 0 Amanda Mae Court | $129,200 |
| NE-01 | 3745 SWALLOWTAIL | $125,000 |
| NE-01 | 0000 Hannon Hill Drive | $120,000 |
| NE-01 | 7247 Sleepy Hollow Circle | $115,000 |
| NE-01 | 1005 Waverly Road | $111,000 |
| NE-01 | xxxx terrace Street | $110,000 |
| NW-02 | 1774 San Damian Rd | $110,000 |
| SE-03 | xx Hidden Horse Way | $110,000 |
| NE-01 | 4-A Faraway Farms Rd | $110,000 |
| SE-03 | Lot 1B Ranch Club Rd | $107,000 |
| NE-01 | S-12 DORAL DRIVE | $100,000 |
| SE-03 | 10C E Sunny Mariana Court | $100,000 |
| SE-03 | 4102 Faulkner Lane | $99,500 |
| SE-03 | 000 Register Farm Road | $98,500 |
| SE-03 | 4141 FAULKNER | $92,500 |
| NW-02 | 995 River View Trail | $90,000 |
| SE-03 | 4101 Faulkner Lane | $87,500 |
| NE-01 | xxxx Hickory Woods Trail | $85,000 |
| NE-01 | xxxx Hickory Woods Trail | $85,000 |
| NE-01 | 0000 S Hill N Dale Drive | $82,000 |
| NE-01 | 2212 SHIRLEY ANN CT | $77,000 |
| NE-01 | 2518 Manaussas | $75,000 |
| NE-01 | 2514 Manaussas | $75,000 |
| NE-01 | 2510 Manaussas | $75,000 |
| SW-04 | xxx Blue Lake Run | $75,000 |
| NE-01 | Lot 6 Buck Lake RD | $75,000 |
| NE-01 | Lot 3 Terrace Street | $75,000 |
| NE-01 | Lot 7A Jackson Gap Road | $69,000 |
| NE-01 | 2224 SHIRLEY ANN CT | $66,000 |
| NE-01 | 2220 SHIRLEY ANN CT | $66,000 |
| NE-01 | 2216 SHIRLEY ANN CT | $66,000 |
| NE-01 | 8888 Lee Reeves Road | $65,000 |
| NW-02 | 15268 High Hills Circle | $65,000 |
| NE-01 | 0000 Lake Charles Drive | $65,000 |
| SW-04 | Lot 1,2,3 S Martin Luther King Boulevard | $64,000 |
| NW-02 | xxxx Old Bainbridge Road | $60,000 |
| NE-01 | 3484 Rosemont Ridge | $55,000 |
| NE-01 | 1143 Old Bumpy Road | $53,500 |
| NE-01 | 0000 Plowshare Road | $52,000 |
| NE-01 | 3492 Rosemont Ridge | $50,000 |
| NE-01 | 3488 Rosemont Ridge | $50,000 |
| SE-03 | 1904 Indianhead Drive East | $48,000 |
| SE-03 | 0 TRAILWOOD CT | $48,000 |
| NE-01 | 3412 Cedarwood Trail | $47,500 |
| NE-01 | xxxx Alan-A-Dale Trail | $46,000 |
| NW-02 | xxxx Rivers Landing Court | $46,000 |
| NW-02 | XXX Harriet Drive | $45,000 |
| NE-01 | 3421 HAWKS HILL Trail | $45,000 |
| SE-03 | xxx Brookside Blvd. | $44,000 |
| NW-02 | xxxx Sandy Court | $43,000 |
| NW-02 | xxxx Sagebrook Drive | $42,500 |
| NW-02 | xxxx Silent Creek Lane | $41,000 |
| SW-04 | XXX James Street | $35,000 |
| SW-04 | 1387 McCullough Drive | $35,000 |
| NW-02 | 3602 Swatts Road | $32,500 |
| SE-03 | Lot 10E Montejo Drie | $32,000 |
| SW-04 | 0000 Melvin Street | $31,500 |
| SW-04 | 4267 Ridge Haven Rd. | $30,000 |
| SW-04 | 4259 Ridge Haven Rd | $30,000 |
| SE-03 | xxx HIDDEN CREEK LN | $29,900 |
| SW-04 | XXX Holton Street | $24,500 |
| NW-02 | 1210 Ford Street | $23,000 |
| SE-03 | 10382 Roger Hamlin Road | $23,000 |
| SE-03 | 2223 Natural Wells Road | $22,900 |
| SW-04 | 2010 Saxon Street | $22,000 |
| SW-04 | 3012 S Monroe Street | $20,900 |
| SW-04 | 3006 S Monroe Street | $20,900 |
| NW-02 | 1308 Silver Saddle Dr | $20,000 |
| NW-02 | 0 LATE SUNSET | $17,500 |
| NW-02 | xxx N MERIDIAN RD | $15,000 |
| NW-02 | 0 China Doll Drive | $15,000 |
| SE-03 | 9133 Bearington Drive | $14,000 |
| NW-02 | xxx China Doll Dr | $10,000 |
| NW-02 | xxx China Doll Dr | $10,000 |
| NW-02 | xxx China Doll Dr | $10,000 |
| NW-02 | xxx China Doll Drive | $10,000 |
| NW-02 | 1435 Nashville | $8,000 |
| NW-02 | 1484 Knoxville Ln. | $8,000 |
| NE-01 | XX Thomasville Road | $5,000 |
| NE-01 | X Thomasville Road | $5,000 |
| NW-02 | XXX Bright Drive | $1,823 |
| 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.
Post a Comment