Tallahassee Real Estate Snapshot October 2014
We are overdue for a quick snapshot report of the Tallahassee real estate market, so today's post will address home prices and home values for homes sold in Leon County over the past year.
We are happy to report that home sales are on the rise (still) in Tallahassee, and there is reason to believe this positive trend will continue.
Tallahassee Real Estate Market Activity
The number of home sales in Tallahassee is on the rise (good news), but we are still far below the levels experienced in the 1990s, let alone during the housing market explosion that crested in 2006.
In the real estate graph above, monthly home sales are plotted for the past 12 years (green dots). The green line shows the one-year trend (average) for the number of homes selling each month.
Currently, we can see that the number of homes selling is on the rise, and I expect that this growth will continue in 2015.
However, if mortgage interest rates rise beyond 6% next year, it could seriously hamper the recovery of the Tallahassee real estate market. I do expect rates to rise, but I also expect to see a growth in home sales in 2015, as our market is still trading at levels consistent with 1993 (and we have a larger population now).
Distressed Home Sales Still HeavyWe are far from reaching the end of problem properties needing to clear the Tallahassee real estate market.
Right now, 30% of homes sold in Tallahassee are short sales, foreclosures, pre-foreclosures and bank owned properties (REO), so distressed homes are wreaking havoc on both prices and values in Tallahassee.
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Tallahassee Home Prices
We are seeing a split in price movement in Tallahassee. It appears as if much of the remaining distressed inventory is at the lower price ranges, thus we are seeing a decline in the average sales price of distressed property. But the opposite appears to be true for equity sellers. Arms length home sales are seeing higher average prices.
Currently, the average arms length home sales price is $216,600, while the average distressed home sales price is $110,400. Bear in mind, our report includes single family detached homes, condominiums and townhouses when we are determine "house" prices, sales and values.
Tallahassee Home Values
Unlike average prices which tell us what buyers are buying, we monitor average home values (price per square feet over time) in order to determine whether homes are appreciating, depreciating, or remaining flat.
Thus far in 2014, the average value of an arms length home sold has been $109 per square foot, up 1% from $108 in 2013. Distressed properties have seen a larger climb in value, with the average distressed home sale value of $71 per square foot up more than 4% from the $68 per square foot recorded for distressed property sales in 2013.
Using Market Knowledge To Your Advantage
A lot of agents like to say they are "market experts," but I challenge you to find anybody in the Tallahassee real estate market that provides the level of market analysis that we provide at Joe Manausa Real Estate. If you would like to know how our customers use this information to save tens of thousands of dollars when they buy or sell a home in Tallahassee, just drop me a note to schedule a time for a quick demonstration that will make you delightfully wealthier.