Weekly Special | March 28, 2016

Attached Housing Is The 2016 Special

Along-term examination of home prices in the existing home sales market has produced an interesting picture for real estate investors.

The graph above contains 26 years of information relating to the sale of existing homes (meaning no new construction) for detached single family homes (red) and attached condominiums and townhouses (green).

The solid lines show the one-year trend of home prices for each category of properties while the dashed line shows a linear extension of average prices in the 1990s.

This graph is a simplified regression to the mean analysis of home prices in Tallahassee, and it shows that detached single family homes right now are priced exactly where we would expect them to be, while condominiums and townhouses are priced far below where we would have projected in the 1990s.

Another way to put it is that detached single family homes are currently priced at 102% of this expected value, while condominiums and townhouses are priced at 73% of their expected values.

Simply put, the long-term investor who believe that things will always (eventually) return to normal can find some excellent buys right now among the existing condominium and townhouses listed for sale in Tallahassee.

The likelihood of better-than-average appreciation lies among attached existing units as the best deals now.

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