Weekly Special | April 28, 2025

Are Home Values Falling In Tallahassee?

There seems to be a common misconception that home values are falling in Tallahassee, but that is simply not the case.

The graph above tracks the year-over-year home value (measured in price per square foot of heated and cooled space) of homes sold each month, and the dashed line reveals the 12-month trend which currently sits just above 5%.

Historically, home values have averaged a 5.4% annual appreciation rate, so this year’s result is very common.

What is not so common is the crazy fluctuations we are seeing with mortgage interest rates, pushing and pulling buyers to and from the market at a hectic rate.

As I write the draft of this newsletter (last Thursday), the thirty-year fixed rate conventional mortgage is “down to” 6.94%, and they appear to be falling slightly since the Trump Administration showed signs of working with China to end the tariff wars.

It’s All About Rates There are many factors that traditionally drive the demand in the housing market, but 2025 is specially sensitive to the changes in mortgage rates.

Pent-up demand from current homeowners seems to be reemerging after years of delayed moves following the pandemic. As mortgage rates near 6%, activity on our website picks up noticeably. But once rates climb toward —and beyond —7 %, that momentum slows.

So if you want to know how active the housing market is in 2025, just pull up current mortgage rates and you’ll know!

The original one-page Weekly Special PDF is still available.