Thursday, May 16, 2013

1st Quarter Tallahassee Real Estate Market Statistics

1st Quarter 2013 Tallahassee 

Residential Real Estate  Market Snapshot.

It appears that the overall health of the local residential real estate market in Tallahassee has continued to move in a healthy direction through the first quarter of 2013.  Sales are up year over year in quarter one of 2013 from quarter one of 2012.  Also, the total number of properties listed for sale has also increased.  The increase in the number of properties listed for sale is most likely a result of increased confidence in the real estate market stemming from a sharp year over year increase in the average price of a home in Tallahassee in 2012. The recent increase in property values in Tallahassee has also probably lifted some homeowners who previously wanted to sell but could not from being underwater on their mortgages thus enabling them to now have the ability to sell their homes.  

Other positive signs that Tallahassee's residential real estate market is heading in the right direction is that the average sale price/list price ratio increased.  Also, the average number of days a property took to sell decreased.  Finally, both the ratio of distressed sales compared to total sales decreased as well as the total number of distressed sales decreased in the 1st quarter of 2013 from the same time period a year before.  

The average sale price/list price ratio is the percentage of what a property sells for compared to what it is listed for sale at. The higher this ratio is, the healthier the real estate market typically is.  
The decrease in the ratio of distressed sales compared to total sales indicates that the real estate market is getting better since distressed sales typically sell at a discount thus depressing the values of surrounding properties and the overall market.
The only negative aspect of this data, which might not even be that negative, is that the average sales price was down a tiny bit in the first quarter of 2013 compared to the first quarter of 2012.  This might not be a result of negative market conditions, but instead a result of the increase in the supply of homes on the market.  The increased supply seems to have caused prices to keep from increasing.  However, there will likely be an increase in demand for housing too with the job market improving which will most likely cause the newly increased supply of homes to be absorbed.  Most likely, home prices in Tallahassee will continue to hold steady and increase very modestly into the near future.  
A snap shot of the year over year market statistics for the 1st quarter of 2013 are below.  If you have any questions about any of these market statistics, please don't hesitate to contact me! Remember, an informed consumer will always have the edge over the uninformed consumer!
  • 8.7% increase in the number of properties listed for sale (1,254)
  • 10% increase in the number of overall properties sold (570)
  • 1.2% decrease in the average sales price ( $170,681)
  • 2.05% increase in the overall sale price/listing price ratio (96.46%)
  • Average days it took a property to sell decreased 30.9% (121 days)
  • Foreclosures and short sales in 1st quarter of 2013 made up 23.5% of total sales which is down from 29.3% in the first quarter of 2012.