Search Listings

A Real Look At Real Estate Depreciation

Real Estate Depreciation ImageReal estate depreciation in North Florida shows an average fall of 27% since 2006, but home values have dropped by as much as 67% in one North Florida zip code. The relative supply of homes for sale in our region remains near 18 months, and lackadaisical demand is the largest contributor to our problem.

We have been saying for quite some time (years) that the problem with the demand for housing actually is a supply-side problem, where home sellers are upside down in their homes and have no equity should they want to sell a home and move. Our measurement of home sales in the North Central Florida Region show that unit sales are down a staggering 55% since 2006, and there is little evidence to show that this is going to change in the next few years.

Relative Supply Of Homes In North Central Florida

The following real estate graph shows that even falling supply cannot keep pace with the falling demand for homes in our area. When we take all of the information from the MLS in Tallahassee, we find 18 months of relative supply in following real estate supply and demand graph:

North Florida Real Estate Supply And Demand Graph Image

Real Estate Depreciation By Zip Code

By scouring through the sales from the MLS in Tallahassee, I was able to assemble a simple table that shows how each zip code has changed since 2006. For the years 2006 and 2010, I recorded the total number of homes sold (single family detached homes, condominiums, and townhouses), the average price of these sales, and the average value (measured in price per square foot). The resulting change from 2006 to 2010 is recorded in the third section of the chart below:

2006 2010 % Change 2006 to 2010
Zip Code # of Sales Avg. Price Avg. Value # of Sales Avg. Price Avg. Value # of Sales Avg. Price Avg. Value
32301 798 $178,340 $157 193 $123,265 $92 -75.8% -30.9% -41.1%
32303 1104 $167,950 $121 469 $132,370 $89 -57.5% -21.2% -26.6%
32304 368 $132,671 $109 106 $87,759 $70 -71.2% -33.9% -35.8%
32305 180 $143,672 $112 85 $110,210 $81 -52.8% -23.3% -28.2%
32308 357 $245,323 $137 179 $206,917 $109 -49.9% -15.7% -20.4%
32309 493 $279,287 $137 284 $230,845 $109 -42.4% -17.3% -20.2%
32310 196 $148,599 $116 66 $85,659 $62 -66.3% -42.4% -46.2%
32311 603 $266,885 $148 274 $202,142 $112 -54.6% -24.3% -24.5%
32312 642 $346,579 $151 440 $254,903 $115 -31.5% -26.5% -23.8%
32317 219 $277,001 $144 135 $222,175 $118 -38.4% -19.8% -18.2%
32322 28 $383,054 $423 23 $75,935 $87 -17.9% -80.2% -79.4%
32327 521 $214,957 $130 234 $140,215 $87 -55.1% -34.8% -33.0%
32333 82 $204,000 $119 51 $164,004 $88 -37.8% -19.6% -26.4%
32343 139 $158,778 $116 43 $135,325 $96 -69.1% -14.8% -16.8%
32344 71 $200,605 $114 40 $205,381 $91 -43.7% 2.4% -19.9%
32346 16 $521,056 $382 33 $196,677 $125 106.3% -62.3% -67.2%
32351 122 $152,153 $90 48 $107,834 $60 -60.7% -29.1% -33.5%
Grand Total 5,939 $219,493 $136 2,703 $177,193 $99 -54.5% -19.3% -27.2%

This chart shows that the average real estate depreciation in North Central Florida is over 27%, with some zip codes doing far worse than others. Of course, zip codes with fewer sales will see more volatile results (32346 for example had only 33 sales in 2010 and recorded a 67% decline in values), while the results from zip codes with more sales can be viewed with a greater confidence level (32303 had 469 homes sold).

Real Estate Depreciation In 2011

The trend towards real estate depreciation continues in 2011, with year over year results showing an average drop in values of 11% in the North Central Florida real estate market. The one positive sign in this report is that home sales in the Tallahassee MLS were up 13% in the first quarter of this year versus 2010.

1st Quarter 2010 1st Quarter 2011 % Change 2010 to 2011
Zip Code # of Sales Avg. Price Avg. Value # of Sales Avg. Price Avg. Value # of Sales Avg. Price Avg. Value
32301 36 $129,709 $94 41 $117,810 $79 13.9% -9.2% -15.6%
32303 73 $136,476 $93 106 $109,220 $76 45.2% -20.0% -18.4%
32304 23 $86,452 $70 34 $79,759 $65 47.8% -7.7% -7.2%
32305 17 $120,100 $89 26 $102,281 $70 52.9% -14.8% -21.5%
32308 35 $210,239 $112 38 $239,009 $112 8.6% 13.7% -0.1%
32309 54 $246,303 $112 61 $224,228 $107 13.0% -9.0% -4.5%
32310 12 $109,159 $81 23 $49,826 $42 91.7% -54.4% -48.3%
32311 38 $202,491 $113 52 $208,502 $104 36.8% 3.0% -7.5%
32312 112 $232,090 $112 80 $242,651 $109 -28.6% 4.6% -2.6%
32317 25 $218,137 $115 29 $206,491 $107 16.0% -5.3% -6.4%
32322 1 $138,200 $37 3 $105,833 $73 200.0% -23.4% 96.8%
32327 48 $165,034 $93 50 $155,839 $92 4.2% -5.6% -0.8%
32333 9 $170,476 $90 11 $114,127 $72 22.2% -33.1% -20.4%
32343 14 $133,879 $96 5 $124,600 $92 -64.3% -6.9% -3.9%
32344 7 $334,553 $116 10 $137,401 $78 42.9% -58.9% -33.3%
32346 11 $154,455 $101 12 $256,425 $147 9.1% 66.0% 45.5%
32351 7 $113,400 $74 10 $93,540 $47 42.9% -17.5% -36.5%
Grand Total 522 $184,054 $102 591 $164,639 $90 13.2% -10.5% -11.0%

I think these tables show an interesting view of the Tallahassee housing market (and beyond). Note how some zip codes in North Central Florida are appearing stronger (32308) while others seem to be getting hammered (32343). We will add this quarterly "view" of the market to our continued analysis of the Tallahassee real estate market and hope to see great improvements in the quarters and years to come.

Post a Comment

Blog Navigation

Posts By Category

All Categories Advice: Real Estate (471) Blogging Real Estate (189) Distressed Property (31) Foreclosures (3) Glossary of Real Estate Terms (29) Government and Real Estate (30) Homes For Sale (100) Housing Market Conditions (1218) Housing Report (54) Lis Pendens (4) Main (1028) Mortgage / Finance (66) New Construction (1) Off Topic (80) Our Listings (3) Our Sales (7) Real Estate Market Snapshot (20) Real Estate Opinion (3) REALTOR News (11) Tallahassee (87) Tallahassee Neighborhoods (322) Uncategorized (50)

Posts By Month

Blog Roll

Homes For Sale In Killearn Lakes Plantation Homes For Sale In Killearn Estates Homes For Sale In Southwood Homes For Sale In Killearn Acres Homes For Sale In Summerbrooke Homes For Sale In Golden Eagle Plantation Homes For Sale In Piney Z Homes For Sale In Bull Run Homes For Sale In Betton Homes For Sale In The Ox Bottom Area

Tag Cloud

Grab Our RSS Feed

Tallahassee Home Searches

Contact Us

Joe Manausa Real Estate
2066 Thomasville Rd
Tallahassee, FL 32308
(850) 366-8917

© Joe Manausa. All Rights Reserved.
Privacy Policy|Terms of Use|DMCA Notice