The Accurate Report On Tallahassee Property Depreciation

Contrary to confusing reports that suggest otherwise, Tallahassee property depreciation continues as sellers still outnumber buyers in the housing market.

When real estate agents show reports of rising prices, they typically are looking at the average (or median) price in one time period and then comparing it to a previous time period.

And while it is important to know the average price of homes in each Tallahassee neighborhood, it simply is not a valid method to determine or measure Tallahassee property depreciation.

When we measure Tallahassee property depreciation, we have to make our best effort to measure "apples to apples."

There still is value in the reports that focus on home prices though, as they provide an insight into home buyer behavior, but definitely not home valuation changes.

Sadly, this is too easy to see when we study information on Tallahassee neighborhoods, yet it's not the kind of information that many real estate reporting agencies find as "good for business."

If you want further evidence that a study of home prices is an ineffective technique to gauge Tallahassee property depreciation, I recommend you read these following articles:

Tallahassee Property Depreciation Table

The following table shows how prices and values have changed in the most active Tallahassee neighborhoods from 2011 to 2012. Note there are several where the average price rose while the average home value fell.

  2011 2012 Summary
Subdivision Units Avg. Price Avg. Value Units Avg. Price Avg. Value Price Δ Value Δ
Killearn Estates 85 $228,279 $98 112 $203,256 $94 -11% -4%
Southwood 111 $287,823 $126 105 $291,091 $125 1% -1%
Killearn Lakes 89 $187,988 $104 80 $195,412 $103 4% -1%
Bull Run 36 $287,613 $140 51 $284,191 $138 -1% -1%
Killearn Acres 37 $164,286 $98 37 $150,020 $96 -9% -3%
Golden Eagle 33 $475,195 $133 37 $433,854 $128 -9% -4%
Piney Z 28 $192,062 $112 34 $199,068 $105 4% -7%
Ox Bottom Manor 17 $283,388 $116 30 $304,532 $116 7% 0%
Summerbrooke 19 $347,089 $124 29 $323,179 $119 -7% -4%
Woodbriar 27 $75,266 $56 25 $76,637 $56 2% 1%
Waverly Hills 12 $237,708 $91 20 $244,645 $107 3% 17%
Betton Hills 18 $306,094 $117 19 $287,553 $112 -6% -4%
Arbor Hill 9 $137,522 $110 19 $125,203 $93 -9% -15%
Hampton Creek 13 $145,011 $116 17 $143,921 $110 -1% -5%
Weems Plantation 14 $157,843 $115 16 $157,650 $108 0% -6%
Indian Head Acres 24 $131,000 $92 16 $127,319 $85 -3% -7%

Tallahassee Property Depreciation Graph

It is easier to see the real story on Tallahassee property depreciation from the table above by putting it into a real estate graph, which I have done below.

The change in home prices are shown in blue, while the change in home values are shown in red. Only Waverly Hills and Woodbriar show a gain in home values, while the rest continue to demonstrate that Tallahassee property depreciation continues.

Tallahassee Property Depreciation

Both Waverly Hills and Woodbriar seem to be "beating the market" at first blush, but when we look at current home valuations, they are just catching up to the market after having a particularly poor year in 2011.

The fact is, home values are depreciating at a slower rate in Tallahassee as inventories approach market equilibrium. Some price points are going to show some strength this year, but all homes that are priced over $250,000 will continue to land on the Tallahassee Property Depreciation Report. The upper end of the market is still way-out-of-balance, and the higher the price, the longer the time until they get to see a recovery.

Accuracy In Reporting

We will continue to do our best to report fairly and honestly the changes in the Tallahassee real estate market. We do not believe it is our job to "hype the market," rather it is to give people who want to buy a home and sell a home in Tallahassee the information that they need to successfully navigate the housing market through these difficult times.

And if you want to know the truth about how Tallahassee property depreciation has impacted the value of your home, just drop me a note and we can schedule a time to analyze your home and determine your best course of action.

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