Weekly Special | January 5, 2019

Home Appreciation Accelerated In 2019

Tallahassee property owners enjoyed significant growth in the values of their condominiums, townhouses, and single-family detached homes in 2018.

The graph above shows home value movement over the past fifteen years by charting the price per square foot of single-family detached homes (blue) as well as condominiums and townhouses grouped together (red).

The average value of existing single-family detached homes grew a whopping 9.1% in 2018, while the attached properties grew at a healthy rate of 6.6%.

Typically, we expect to see appreciation rates near 3% per year, so last year’s growth is quite exceptional.

Perspective On Last Year’s Growth If you had purchased the average priced detached house at the end of 2017, you would have paid $230K. One year later, your home would be worth roughly $251,000, a gain of $21,000.

If you financed your purchase with a 95% LTV loan at the market rate of 3.95%, your entire 12 (PITI) payments would have totaled roughly $19,000, meaning your equity growth completely covered your monthly cost of ownership.

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