What's For Sale In Tallahassee
If you have been thinking about buying a home for more than just the past few months then it is likely you have noticed a big change in what's for sale in Tallahassee.
The inventory has been evolving from one glutted with short sales, foreclosures, and bank owned properties to a market filled with fewer homes and a declining inventory of distressed properties.
In other words, the Tallahassee real estate market is making its way back to "normal."
A Picture Of What's For Sale In Tallahassee
Long time readers of the Tallahassee Real Estate Blog know that I believe in charts and graphs. They provide a picture of what is happening in the market, and knowledgeable users can gain an advantage when selling a home or buying a home by knowing more about their surroundings.
Today's real estate graph contains a simple breakdown of what's for sale in Tallahassee. It divides the market into 2 separate segments:
- Distressed Properties - Short sales, foreclosures, and bank owned properties (shown in red below)
- Arms Length Properties - Homes being sold by equity owners who are seeking full market value and do not need approval to sell from a third-party (shown in green below)
Currently, the distressed properties "only" represent 25% of the current homes for sale in Tallahassee. That is the lowest we've seen going back four years, and it appears to be a trend that is continuing lower.
Home Buying Opportunities
There will always be "deals" for homebuyers, but I think the properties that we have seen sold in recent years will always be remembered as the best time to buy a home in Tallahassee.
Even today, homes are selling at prices that are far below the level for which they could be rebuilt. This "discount to cost" does not mean much in a market glutted with too much inventory, but when we grow beyond the current supply, future supply will be produced at levels that far exceed "cost" today.
Why Replacement Cost Should Matter To Homebuyers
I produced this video several years ago to remind our local investors how to play it safe. It demonstrates a process to include a safety net when making a real estate investment decision.
We are still in a "buy" cycle in the Tallahassee real estate market, but today's graph suggests that we might be moving beyond it in the coming months (or years). When you factor in the likely change coming for mortgage interest rates, my recommendation is for those homebuyers who have been sitting on the fence to get into the market and make your selection.
If you would like to know more about what's for sale in Tallahassee, just drop me a note and we can schedule a time to show you a smarter way to buy a home.