1st quarter 2014 Tallahassee Residential Real Estate Market Snapshot And Year Over Year Market Statistics

Tallahassee's residential real estate market was pretty stable in the 1st quarter of 2014.  Overall the market here improved in 1st quarter of 2014 from the first 1st quarter of 2013.  The number of residential property sales has increased, the number of properties listed for sale has increased, the average number of days a home sat on the market before it sold decreased and the percentage of distressed sales (foreclosures and short sales) compared to total sales has come down since the first quarter of 2013. 

For the first time in a while though, we did see a very slight decrease in average sale price in the 1st quarter of 2014 compared to the same time period a year before.  We also saw a very slight decrease in the average sale price/listing price ratio which compares how much the average home sells for compared to what it's listed for sale at.  These decreases were so small though (less than 1%) it's probably fair to say that prices and the sale price/listing price ratio was flat in the 1st quarter of 2014 instead of decreasing.  Nevertheless though, it is the first time in quite a while that we have not had a quarter with a year over year increase in prices. 

As mentioned above we saw an increase in the number of properties sold in the first quarter of 2014 compared to the same time the year before.  Sales of residential properties increased by 12.21% which I would say is a substantial gain.  The selling season jumped off to an early start this year compared to years past.  Being on the front lines here, I noticed this from my own business.  I think that people jumped into the market a little earlier this year because there was a sense of urgency to buy due to fear that interest rates would be going up.  This along with an overall improvement in the economy and job market is probably why year over year sales were up in the first quarter of this year. 

The number of properties listed for sale also increased year over year in the 1st quarter of 2014.  Listings increased by 4%.   The increase in listings I believe is due to the price increases we saw in 2013.  Due to prices increasing last year, more homeowners feel like it's a good time to list their homes for sale, because they can now get the price they want for their home. 

Average home prices decreased in the 1st quarter of 2014 down 0.59% from the 1st quarter of 2013.  Even though the price decrease was very small and is best described as saying prices are flat, it's still a change from the trend of increasing prices we have been seeing over the past few years.  However, to me it's not all that surprising.  For the past couple years, we have seen pretty substantial increases in prices.  In the first part of 2013 we saw year over year price increases of close to 10%.  That rate of increase was not sustainable.  Interest rates have increased somewhat this year compared to last year, so the higher interest rates could have something to do with prices not going up.  The average rate on a 30 year fixed rate mortgage in the 1st quarter of 2013 was 3.5%, and in the 1st quarter of 2014 it was 4.35%.  Higher interest rates decrease the buying power of people purchasing homes with a mortgage, so it would make sense that people are wanting to pay a little less for homes due to increased interest rates.  Besides this, I think the very slight decrease that we saw in home prices is a result of home prices just leveling out due to the balancing of supply and demand of homes

The average sale price/listing price ratio of homes also very slightly decreased in the 1st quarter of 2014 from the 1st quarter of 2013.  In the first quarter of 2014 the average home sold for 96.10% of what the home was listed for sale at down from 96.44% in the 1st quarter of 2013.  96.10% is still a very healthy average sale price/list price ratio, and is indicative of a good balance in the supply and demand of homes.  The 0.34% decrease we saw this year is probably a result of the market just balancing out and interest rates going up.  Nothing to be worried about though.

 

The average number of days a home sat on the market before it sold decreased in 1st quarter of 2014 by 14% coming down to 104 days compared to 121 days in 1st quarter of 2013.  When homes sell quicker this is healthy indicator for our real estate market.  It means that demand for homes is increasing and that sellers are pricing their homes right instead of overpricing their homes which causes homes to linger on the market without selling. 

 

Finally, the percentage of total properties sold that were distressed sales (foreclosures and short sales)  decreased in the 1st quarter of 2014 compared to a year earlier.  In the 1st quarter of 2014 distressed sales made up 19.81% of total sales in Leon County.  This is down from 23.1% in the 1st quarter of 2013.  Distressed sales sell at a discount compared to non distressed sales, and they bring down the property values of surrounding properties.  A decrease in the number of distressed sales is a positive sign that our real estate market is improving, and it's needed so that property values can increase in value over time.  As the distressed sale inventory continues to be sold off, we can expect distressed sales to continue to decrease.  Most distressed sales were a result of bad loans made during the housing bubble.  Most home loans made after 2009 have been good loans with low default rates, so the rate at which distressed sales are being sold is much greater than the rate of new distressed sales entering the pipeline. 

 

Overall the market improved in the 1st quarter of 2014 compared 1st quarter of 2013.  I think we can expect the market to continue to be stable in 2014.  With interest rates being higher this year, I think it's possible that prices could go down a little bit.  Since we had solid price increases over the last few years, I don't think it's anything to be worried about.  It's simply the market adjusting to increases in interest rates coming up from the historic lows we saw last year.  The fundamentals of our local real estate market are strong with sales and listings going up and distressed sales going down.  The important thing to realize is that if you are a buyer, it's still a great time to buy.  Interest rates are historically low, and prices are still very affordable. It's certainly more affordable than renting!  If you are a seller it's probably the best time to sell that we have seen since 2006.    A summary of the year over year market statistics for residential real estate for 1st quarter of 2014 in Leon County are below. 

 

The number of residential properties sold increased by 12.21% (651 properties sold)

 

• The number of properties listed for sale increased by 4% (1,395 properties listed for sale)

 

• The average sale price decreased by 0.59% ( average sale price of $171,419)

 

• Decrease in the average sale price/listing price ratio of 0.34% (average property sold for 96.1% of it's listing price)

 

• Decrease in the average days on the market of 14% (average days on market before sold was 104 days)

 

• Decrease of 3.3% in the overall percentage of distressed sales compared to total sales (distressed sales made up 19.81% of total sales).

 

• Average rate on a 30 year fixed rate mortgage increased from 3.5% in 1st quarter of 2013 to 4.35% in first quarter of 2014.   

 

4th Quarter 2013 Tallahassee, FL. residential real estate snapshot and year over year market statistics.

4th Quarter 2013 Tallahassee Residential Real Estate Market Snapshot And Year Over Year Market Statistics.

  

  

     Tallahassee's residential real estate market continued to rally in a positive direction in the 4th quarter of 2013. Year over year, every single metric that I used to analyze the condition of our local residential real estate market improved in the 4th quarter of 2013 from the same time period a year earlier.  

 

The big improvement though came in the number of properties listed for sale.  Year over year we saw a 22.4% increase in the number of properties listed for sale in the 4th quarter of 2013.  This is very good news because over the past year or two our local housing inventory has been tight. This has made it difficult for home buyers to find the right house.  It has also led to many situations where there have been multiple bids on properties leaving many home buyers frustrated when they are not the winning bidder.  

 

The increase in the number of properties listed for sale is probably caused by a combination of factors.  The overall improvement in the job market and economy has given life to move up buyers who are selling their smaller homes to purchase larger homes.  Also, home prices have started to climb over the last year or so which has brought many homeowners out of negative equity and into positive equity allowing them to sell their homes without having to bring money to closing. This combination of events has caused an increase in the number of properties listed for sale. Hopefully this year, home buyers in Tallahassee will find shopping for a home a little easier since they will have more homes to choose from.  

 

The second area of improvement that we saw in the 4th quarter of 2013 was an increase in the average sale price.  The average year over year sale price of residential properties in Tallahassee increased by 1.7%.  While this increase is small, it is still an increase.  It's important to keep in mind that earlier in the year, we were seeing year over year increases of around 8% in property values.  That level of increase is not sustainable, and now it looks like our local real estate market is starting to balance out, and prices are starting to go up at a sustainable rate.  Historically, an average annual increase of 3%-5% is considered normal, so in the 4th quarter of 2013, prices rose just a little below that level. As the market heats up in the spring and summer though, annual price increases will probably jump up into that 3%-5% range.  

 

The third area of improvement that we saw in the 4th quarter of 2013 was in the number of residential properties sold.  In the 4th quarter of 2013 we saw a 5.6% year over year increase in the number of properties sold.  The increase in home sales along with an increase in average sale prices are the most important signals that our housing market is improving. The increase in sales is attributed to again the improving economy, as well as to a slight easing on mortgage lending standards.  Lenders have slightly relaxed their lending standards making it easier for buyers to get loans to purchase homes.  Finally, it seems that more people are buying homes because they have stopped worrying that properties will lose value and people once again have regained confidence that homes are good long term investments that will appreciate over time.  

 

The next metric where we saw improvement in is the average days on the market it took to sell a home.  Year over year the average time it took to sell a home in Tallahassee decreased by 30% going down from 141 days in the 4th quarter of 2012 to 98 days in the 4th quarter of 2013.  The decrease in the average amount of time it took to sell a property is a sign of stronger demand from home buyers which is a tell tale sign of an improving real estate market.  

 

We also saw an improvement in the average sale price to listing price ratio. This ratio simply measures what a home sells for compared what it is listed for sale at.  In the 4th quarter of 2013, the average house sold for 96.26% of it's list price.  This ratio is high and is also indicative of strong buyer demand for housing.  

 

Last but certainly not least, in the 4th quarter of 2013 we saw a decrease in the portion of homes sold that were distressed sales (short sales and foreclosure sales).  In the 4th quarter of 2013 distressed sales accounted for 16.2% of all single family residential property sales in Tallahassee.  This figure is down from 23.6% in the 4th quarter of 2012.  

 

Distressed sales typically sell at a discount compared to non-distressed sales, and they bring down values of surrounding properties.  For a while now, distressed sales have been suppressing home values. Now that they are decreasing in both total number as well as decreasing as a portion of total sales, property values will have an easier time continuing to increase as they have done historically.  

Overall Tallahassee's real estate market is on strong footing, and we are transitioning back into a healthy and balanced real estate market.   The average annual price increases are back to historical and sustainable levels.  Also, the level of housing inventory and buyer demand for housing is balancing out.

As we move into the new year I think we can expect to see home prices increase slightly in Tallahassee as well as slight increases in both number of homes sold and the number of homes listed for sale.  

There could be a couple of things that could hinder our local real estate market going forward.  First off, it seems that banks are starting to unload more foreclosure properties on to the market. If we have a sharp increase in the number of foreclosure properties on the market, this could hurt home prices. Also, the new qualified mortgage lending standards went into effect on January 10th 2013 which could make it tougher on some looking to obtain mortgages to purchase homes.  This could hurt home sales.  Most likely though the increase in buyer demand for homes and the improvement in the overall economy and job market will be enough to overcome these obstacles, and our real estate market will continue to improve modestly and move in a positive direction in 2014.  The Tallahassee year over year 4th quarter real estate market metrics are below for you to review.  

• 22.4% increase in number of properties listed for sale (996 properties)

• 5.6% increase in the number of properties sold (703 Properties)

• 1.7% increase in the average sale price ($181,356)

• 1.32% increase in the average sale price/listing price ratio (96.26%)

•  30% decrease in the average number of days it took to sell a property (98 days)

• 7.4% decrease in the proportion of distressed sales compared to total sales (distressed sales made up 16.2% of total sales).  

3rd Quarter 2013 Tallahassee Residential Real Estate Market Snapshot And Year Over Year Market Statistics.

  

  

Well Tallahassee's real estate market continues to improve in the 3rd quarter of 2013 when compared to the same time a year earlier.  We saw overall improvements in all of the metrics from the 3rd quarter of 2012 to the 3rd quarter of 2013.  Based on the improvements it seems that Tallahassee's local real estate market is recovering from the real estate bust, and is returning to more of a historically traditional and balanced real estate market.

 

First of all, the number of residential properties listed for sale in Tallahassee increased by 26.2% year over year in the 3rd quarter of 2013.  This is great news because in the last year and a half or so we have had a shortage of housing inventory making it hard for homebuyers to find a home that fits their needs.  The shortage of housing inventory has led to many bidding situations on properties, so this recent increase housing inventory is good news for homebuyers as it will provide them more homes to choose from.

 

In addition to the increase in the number of properties listed for sale, we also saw a whopping 29.3% year over year increase in the number of properties sold in Tallahassee in the 3rd quarter of this year.  The increase in home sales has largely been a product of an improving economy in the state of Florida, affordable home prices and low interest rates on home loans.  Also lenders have very slowly been relaxing a little bit on lending standards making it a little bit easier for buyers to obtain home loans.  I emphasize a little bit because lending standards are still more strict compared to historical norms.  The overall increase in home sales is a sign of an improving local real estate market though.

 

The year over year average sales price of residential property also went up in Tallahassee in the 3rd quarter of this year.  The increase in the average sales price was only a modest 3.03%, but that falls in line with the rate that homes have historically appreciated by.  This rate of increase seems to be a sustainable rate of increase, so this is one sign that we are back to more historically traditional real estate market conditions.  This should spur more buying and selling of property as more people regain the confidence that real estate is again a safe investment. 

 

Another sign that the real estate market is improving here in Tallahassee is that the sale price/list price ratio for residential real estate increased in the 3rd quarter of 2013.  This ratio measures what the average home sells for compared to what it's listed for sale at.  In the 3rd quarter of 2013 the average home sold for 96.61% of what it was listed for sale at.  That is up from 96.01% in the 3rd quarter of 2012.  The increase in the average sale price/list price ratio indicates that there is healthy buyer demand for residential properties, and that people selling residential properties are listing their property for sale at close to what it's market value is. 

 

The fifth metric I look at is the average number of days a property sits on the market before it sells.  This also improved in the 3rd quarter of 2013 from the same time a year ago.  The average time a residential property sat on the market before it sold decreased by 22.2% from the same time a year earlier.  This means that homes are not lingering on the market as long which is an indication that sellers are pricing their homes to sell and that there is an increase in buyer demand for homes both of which are positive things for Tallahassee's real estate market. 

 

Last but not least, the total number of distressed sales (foreclosures and short sales) compared to the total number of home sales in the 3rd quarter of 2013 decreased by 9.1% from the same time a year ago.  Distressed sales only made up 13.9% of total sales in Tallahassee in the 3rd quarter of this year which is much better than 23% last year at this time.  This is great news!  Distressed sales typically sell at a discount compared to normal sales. These discounted sales prices typically depress overall home prices by bringing down the values of surrounding properties.  The large number of distressed sales over the last few years has continued to keep home prices down, so the fact that distressed sales are now making up a smaller portion of total sales leads the way to increasing property values. 

 

Overall Tallahassee's real estate market is continuing to improve.  It will most likely continue to improve, and prices will most likely increase modestly in the foreseeable future.  A couple things that could hinder the recovery would be if we have a sharp increase in interest rates or if the number of short sales and foreclosures begins to increase again.  Interest rates will most likely go up, but probably modestly, and foreclosures and short sales will probably to increase slightly in Tallahassee as banks begin to unload property again.  However the improved economy and increase in buyer demand will most likely be enough carry our real estate market in a positive direction in the near future.

 

The summary of the 3rd quarter real estate metrics is below.

 

• 26.2% increase in the number of properties listed for sale. (1,297)

• 29.3% increase in the number of properties sold. (887)

• 3.03% increase in the average sale price ($185,035 average sale price)

• 0.6% increase in the average sale price/list price ratio (96.61%)

• 22.2% decrease in the average number of days on the market. (98 days)

• 9.1% decrease in the portion of distressed sales compared to total sales.  (13.9% of all sales were distressed sales)

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.  

Snapshot of 4th Quarter Tallahassee Residential Real Estate Market Statistics

Just pulled the 4th quarter Year over year residential real estate market statistics for Tallahassee and it's looking pretty good.  In a nutshell, prices are up a good bit, sales are way up, number of listing inventory is slightly down, properties are selling closer to what they are listed for sale at, and properties are selling quicker. Finally, the number of distressed sales (foreclosures and short sales), expressed as a percentage of total sales, is down.  If this trend continues, it's looking like it will be a good year for residential real estate in Tallahassee.  For quite a while, the fundamentals of the real estate market here in Tallahassee have been getting better.  Supply of properties has been coming down for a couple years now, and the number of properties selling has also been increasing for a couple years now.  However, the impact of foreclosure and short sales have caused prices to stay down.  Until now that is.  For the first time in a while, the number of foreclosures and short sales expressed as a percentage of total sales, has come down.  At the same time ( and I don't think this is a coincidence) home prices have come up in a big way posting an 8.8% year over year increase in the 4th quarter of 2012. Since this is the first quarter I have seen since the boom years of the mid 2000's where we have had a large year over year increase in prices like this, I think it could be too soon to say our real estate market has turned the corner completely.  However, if we have another quarter or two like this, I think we can say our real estate market here in Tallahassee is back to a much healthier condition.   The snapshot of the statistics are below for the 4th quarter are below.

8.8% Year over year increase in average sales price ($178,485)

37.2% increase in the number of overall properties sold (667)

2.3% decrease in the number of properties listed for sale (799)

0.49% increase in the overall sale price/listing price ratio (94.95%)

Average days it took a property to sell decreased 3% (142 days)

83.48% of the properties listed sold in the 4th quarter of 2012. Up from 59.49% a year earlier.

Foreclosures and short sales in 4th quarter of 2012 made up 23.2% of total sales down from 25.7% of total sales a year earlier.

Full 3rd Quarter Tallahassee Residential Real Estate Market Report

Today I will be giving you an update on the current condition of Tallahassee's real estate market. Once again I have taken the liberty of doing some research, and using the Tallahassee Board of Realtors Multiple Listing Service statistics, I have pulled and analyzed some very useful data that I will be using here today to give you an idea of how Tallahassee's residential real estate market is doing. In my research I made year to year comparisons covering and comparing the third quarter of 2011 to the third quarter of 2012.. To make my data as meaningful as possible, I divided properties by both price range and location. I divided the properties up into 5 different price ranges and 4 different areas of Leon County. In my research I looked up the number of homes listed for sale during those time periods, the number of homes sold in those time periods, the average sale price of the homes that sold in those time periods, the average number of days it took for a home to sell in those time periods, and the sale price to list price ratio (this is the average percentage of what a home sold for compared to what it was listed for sale at). I also looked at what I call the "distressed sales/total sales ratio" This ratio is the number of distressed sales (foreclosures and short sales) divided by the total number of  total sales. This figure is important because the higher this ratio is the more downward pressure on home prices there will be. Below is a summary of the data that I found. I have categorized the data by price range and location as well as for Tallahassee as a whole.

Year over Year Market Statistics for Tallahassee As A Whole

• 3.6 % increase in the number of properties listed for sale (1008)
• 4.4% increase in the number of properties sold (684)
• 3.1% decrease in the average sales price ( average home price in 3rd qtr 2012 was $172,629)
• 1.53% increase in the average sale price/list price ratio ( 96.04%)
• 8.7% decrease in the number of days it took a property to sell for on average (126 days)
• 4.9% increase in the distressed sales/total sales ratio (23.1% of all sales were distressed sales in 3rd Qtr. of 2012).

Summary of Tallahassee Real Estate Market as a Whole

Overall the fundamental health of the real estate market in Tallahassee is good.  The Tallahassee real estate market for single family residential property showed signs of improvement by most measures.  Both the number of properties sold as well as the number of properties listed for sale increased.  Also, the average sale price/list price ratio went up slightly which means that single family residential properties sold for an amount closer to their listing price than compared to the same time a year earlier.  In addition to this, the average number of days it took to sell a property that sold in the third quarter of 2012 decreased by 8.7% from the same time a year ago which is a sign of improvement in our real estate market.  To sum up all of the improvements that we saw in the third quarter of 2012, we basically saw both listings and sales increase, the average amount of time it took for a home to sell went down, and homes are now selling closer to their list prices.

While Tallahassee's real estate market seems to be improving, it appears that distressed sales (foreclosures and short sales) are still holding prices down in Tallahassee.  During the third quarter of 2012, 23.1% of total sales were distressed sales. That's up for 18.2% during the same time period a year earlier.  Distressed sales typically sell at a discount compared to non-distressed sales so this means that they bring down the value of nearby properties.  With distressed sales increasing to nearly a quarter of sales in the third quarter of 2012, it's no surprise that the average sales price of homes in Tallahassee decreased in the the 3rd quarter of 2012 down from the same time period a year earlier.

It is worth noting that price declines took place mostly in homes in the $250,000 and below price ranges.  Homes in the $250,001 and up price ranges actually saw increases in their average prices.  The reason that Tallahassee's market as a whole saw a year over year decrease in average sale price in the third quarter is because the vast majority of properties that sell in Tallahassee are $250,000 and below.  

The fact that price declines have taken place in the lower price ranges and not in the higher price ranges makes perfect sense though.  Distressed sales make up a much larger proportion of the total sales in the properties that sold for $250,000 and below.  This means that distressed sales are keeping prices suppressed in these lower price ranges.  Once you get into the $250,001 and up price ranges though, distressed sales start to account for a much smaller percentage of total sales.  This means that distressed sales are not suppressing home prices for homes priced $250,001 and up to nearly the extent that they are in the $250,000 price ranges.  This is most likely why selling prices of homes n the upper price ranges are going up.

Looking forward, it appears that distressed sales are going to continue to account for a large percentage of home sales in Tallahassee.  The long and drawn out judicial process we have for foreclosures here in Florida has slowed down, and continues to slow down, the rate at which these foreclosure properties are released onto the market.  This means that getting rid of all of the foreclosure properties that banks own in Tallahassee is going to be a long and drawn out process.  Unfortunately our local real estate market will not be able to fully recover until most of these distressed sales are sold.  

If we continue on the same rate we are going now, I expect that distressed sales will probably shrink down to an amount that is small enough to where our real estate market will start to see price increases across the board in all of the price ranges.  Of course, if congress fails to resolve the fiscal cliff issue or if taxes are raised on people who make $250,000 and up ($200.000 and up for single individuals) as some in congress are proposing, our economy as a whole could get worse.  This would also slow the recovery of our real estate market and keep prices down.  This is because many of the people who are buying these distressed sales are wealthy investors who make more than $250,000 ($200,000 if single) a year.  If their taxes are increased they will be less likely to purchase distressed properties because they will have less money to do so.  This means distressed properties will linger on the market longer which will prolong the real estate recovery.  

Year Over Year Market Statistics for the $0-$125,000 price range.  

Northeast Tallahassee

• 4.4% increase in the number of properties listed for sale (65)
• 4.1% decrease in the number of properties sold (46)
• 5.1% increase in the average sales price ($94,883)
• 3.38% increase in the average sales price/list price ratio. (93.61%)
• 13.6% increase in the average number of days it took to sell a home (142 days)
• 24.5% increase in the distressed sales/total sales ratio.  (37% of the homes sold were distressed sales)

Northwest Tallahassee

• 1.1% decrease in the number of properties listed for sale (179)
• 16% increase in the number of properties sold (130)
• 1.8% decrease in the average sales price ($77,071)
• 1.57% decrease in the average sales price/list price ratio (93.69%)
• 1.96% decrease in the average number of days it took to sell a home (150 days)
• 0.9% decrease in the distressed sales/total sales ratio (27.7% of total sales were distressed sales)

Southeast Tallahassee

• 14% decrease in the number of properties listed for sale.( 74)  
• 32.4% decrease in the number of properties sold (46)
• 9.7% increase in the average sales price ($79,522)
• 5.05% increase in the average sales price/list price ratio (95.81%)
• 21.5% decrease in the average number of days that it took to sell a property (139 days)
• 8.6% decrease in the distressed sales/total sales ratio (32.6% of total sales were distressed sales)

Southwest Tallahassee

• No change in the number of properties listed for sale (59)
• 24% increase in the number of properties sold (41)
• 27.4 % decrease in the average sales price ($44,316)
• 1.46% increase in the sales price/list price ratio (92.4%)
• 35.3% decrease in the number of days that it took to sell a house. (99 days)  
• 0.6% increase in the distressed sales/total sales ratio (36.6% of total sales were distressed sales)

Summary of the market for the $0-$125,000 price range

Overall it seems that the market for homes in the Tallahassee that are under $125,000 is improving.  This price range seems to be the price range that is most driven, thus most impacted, by foreclosures and short sales (distressed sales).  33.6% of total sales in this price range were distressed sales.  This is about 10% more than the average for Tallahassee as a whole. In this price range, the distressed sales/total sales ratio went up in the 3rd quarter of 2012 about 3.7% from the same time period a year earlier.  The number of properties listed for sale in this price range has come down in the third quarter of 2012.  At the same time the number of properties sold in this price range in the third quarter of 2012 inched up.  With listings down and sales up, supply and demand is headed in a healthy direction, that if it continues on the same direction, will lead us back to price gains in this particular price range. A couple other positive signs for the $125,000 and below market is that the average sales price/list price ratio edged up a little bit and the average number of days it took to sell a property has come down some.  This means that properties are selling for closer to their listing price and it's talking less time on average to sell properties in this price range.  

One negative sign that we saw in this price range during the third quarter of 2012 is that the average sales price is slightly down.  With the distressed sales/total sales ratio going up though, this is not that much of a surprise.  The increase in the proportion of distressed sales compared to total sales is holding the prices of homes in this price range down.  This is because distressed sales typically sell at a discount compared to non-distressed sales which brings the value of surrounding properties down.  The proportion of distressed sales compared to total sales will most likely continue to increase in the near future.  This will probably keep the prices of properties in this price range suppressed.  However, due to the laws of supply and demand, the trend that we are seeing of the shrinking amount of housing inventory will eventually lead us to price gains again in this price range.  How soon is the big question.  Inventory has been shrinking in this price range for a couple years now, and we still have not seen prices increase yet.

Year Over Year Market Statistics for the $125,001-$250,000 Price Range

Northeast Tallahassee

• 6.5% increase in the number of listings (263)
• 10.4% increase in the number of properties sold (201)
• 0.6% decrease in the average sales price ($186,623)
•  0.22% decrease in the average sales price/list price ratio (96.41%)
• 3.5% increase in the average number of days it took to sell a property (119 days)
• 4.6% increase in the distressed sales/total sales ratio (18.9% of total sales were distressed sales)

Northwest Tallahassee

• 17.4% increase in the number of properties listed for sale (74)
• 14% decrease in the number of properties sold (43)
• 6.1% decrease in the average sales price ($155,188)
• 1.25% decrease in the average sales price/list price ratio (97.74%)
• 17.1% decrease in the average number of days it took to sell a property (126 days)
• 11% increase in the distressed sales/total sales ratio (21% of total sales were distressed sales)

Southeast Tallahassee

• 36% increase in the number of properties listed for sale (53)
• 5.9% increase in the number of properties sold.(36)
• 4.82% decrease in the average sales price ($165,455)
• 1.25% increase in the average sales price/list price ratio (97.48%)
• 11.4% decrease in the average number of days it took to sell a property( 117 days)
• 16% increase in the distressed sales/total sales ratio( 27.8% of total sales were distressed sales)

Southwest Tallahassee

• 50% decrease in the number of properties listed for sale (7)
• No change in the number of properties sold (6)
• 6.71% increase in the average sale price ($160,445)
• 1.4% decrease in the average sales price/list price ratio (93.02%)
• 11.7% increase in the average number of days it took to sell a property
• 33.3% increase in distressed sales/total sales ratio.( 33.3% of total sales were distressed sales)

Summary of the $125,001-$250,000 price range

Much like the properties in the $0-$125,000 price range, the average price of properties in the $125,001-$250,000 price range have come down slightly in the third quarter of 2012 compared to the same time period a year earlier.  The distressed sales/total sales ratio increased in this price range by 7.7%.  The increase in the distressed sales/total sales ratio is again the most likely reason for the decrease in the average sales price for homes in the price range.  The number of properties listed for sale in this price range did go up slightly though, so this might also have something to do with the decrease in prices.  Per the laws of supply and demand, if you increase the supply then prices will come down.

The total number of properties that sold in this price range did increase.  Also, the average sales price/list price ratio went up slightly as well which means that in the third quarter of 2012 properties in this price range sold for an amount closer to what they were listed for sale at compared to the same time period in 2011.  Finally, there was a slight decrease overall in the number of days on average that it took to sell a property.  

In certain areas of Tallahassee there were some deviations to the market averages in this price range that are worth noting.  First off, northwest Tallahassee saw a 14% drop in the number of properties that sold in this price range.  In southwest Tallahassee there was a 50% decrease in the number of properties listed for sale.  There was also a 6.7% increase in the average sale price for homes in southwest Tallahassee.  

Overall there was more activity in the 3rd quarter of 2012 compared to the third quarter of 2011 for homes in this price range.  Both sales and listings increased year over year.  The market for homes in this price range seems to be improving overall.  The increase in the proportion of distressed sales compared to total sales seems in be holding prices down for homes in this price range though.  This trend will most likely continue into the next year.

Year Over Year Market Statistics for the $250,001-$450,000 Price Range

Northeast Tallahassee

• 26% increase in the number of properties listed for sale (150)
• 11.9% increase in the number of properties that sold (94)
• 1.8% increase in the average sale price($327,327)
• 1.2% increase in the average sale price/list price ratio (96.37%)
• 16.1% decrease in the average number of days it took to sell a property.(99 days)
• 5% increase in the distressed sales/total sales ratio (7.4% of total sales were distressed sales)

Northwest Tallahassee

• 33.3% increase in the number of properties listed for sale (16)
• 166% increase in the number of properties sold (8)
• 10.7% decrease in the average sales price ($314,000)
• 2.12% increase in the average sale price/list price ratio(94.73%)
• 49.2% increase in the average number of days that it took to sell a home (182 days)
• 12.5% increase in the distressed sales/total sales ratio (12.5% of total sales were distressed sales)

Southeast Tallahassee

• 19% decrease in the number of properties listed for sale (17)
• 64% increase in the number of properties sold (18)
• 0.6% increase in the average sales price ($308,755)
• 20.4% increase in the average number of days that it took to sell a property (130 days)
• 1.48% increase in the average sale price/list price ratio (98.02%)
• 12.6% decrease in the distressed sales/total sales ratio (5.6% of total sales were distressed sales

Southwest Tallahassee

• 25% decrease in the number of properties listed for sale
• Sales increased from 0 sales in 3rd quarter 2011 to 2 sales in the 3rd quarter of 2012
• Average sales price in 3rd quarter of 2012 was $349,000
• The average sales price/list price ratio in 3rd quarter 2012 was 96.68%
• In the 3rd quarter of 2012 it took an average of 40 days to sell a property
• There were no distressed sales either year

Summary of the $250,001-$450,000 price range

The vast majority of sales in this price range (about 93%) took place in the northeast and southeast parts of Tallahassee.  Distressed sales accounted for a higher proportion of sales in the third quarter of 2012 compared to the same time period in 2011. Other than that though, all other market indicators for properties in this price range improved in the 3rd quarter of 2012 compared to the third quarter of 2011.  

Both the number of properties listed for sale and the total number of properties sold increased year over year in the third quarter of 2012.  The average sale price/list price ratio for properties in this price range also slightly went up, indicating that homes are selling for an amount that is closer to what he properties are listed for sale at.  The average number of days that it took to sell a property in this price range in the third quarter of 2012 decreased by 9 days on average.  Finally the average sale price for homes in this price range actually increased in the third quarter of 2012 from the same time period a year earlier.  This differs from the trend of Tallahassee's market as a whole which is good news for people who own homes n this price range.  

The increase in prices for homes in this price range actually makes perfect sense though.  The proportion of distressed sales compared to total sales for homes in this price range is much lower than Tallahassee as a whole.  23.1% of total sales were distressed sales for Tallahassee as a whole.  In the $250,001-$450,000 price range though, distressed sales only accounted for 7.4% of total sales.  This means that the number of distressed sales in this price range was not large enough to drive prices down like it was for homes in the lower price ranges.  Again this is good news for people who own homes in this price range.  

In certain areas of Tallahassee we did see some deviations from the overall trend of this price range as a whole.  In northeast Tallahassee homes in this price range decreased while the average number of days it took to sell a home in this price range actually increased.  In the southeast part of Tallahassee, we saw a decrease in the number of properties listed for sale while at the same time we saw an increase in the number of days on average that it took to sell a home.  In southwest Tallahassee, we saw a decrease in the number of properties listed for sale.  

Year Over Year Market Statistics For The $450,001-$750,000 price range.

Northeast Tallahassee

• 26.7% decrease in properties listed for sale (22)
• Total sales stayed the same(11)
• 1.86% increase in the average sale price ($579,545)
• 1.35% increase in the average sales price/list price ratio (94.96%)
• 1.9% increase in the number of days on average that it took to sell a home (109 days)
• 9.1% decrease in the distressed sales/total sales ratio (0% of sales were distressed sales)

Northwest Tallahassee

• Decrease in the number of properties listed for sale from 1 to 0
• Increase in the number of properties sold from 0 to 1
• The home that sold sold for $750,000.
• The home that sold took 401 days to sell
• The home sold for 98.04% of what it was listed for
• There were no distressed sales in the 3rd quarter of either 2011 or 2012.

Southeast Tallahassee

• 16.7 % increase in the number of properties listed for sale (7)
• Sales decreased from 5 sales to 1 sale(1)
• 19.9% decrease in the average sales price ($455,000)
• 1.14% decrease in the average sales price/list price ratio (94.79%)
• 61% increase in the average number of days it took to sell a property (122)
• Distressed sales increase from 0 to 1 (100% of sales were distressed sales)

Southwest Tallahassee

• No Sales or listing activity in either year

Summary of the $450,001-$750,000 price range

The sales and listing activity for homes in this price range was fairly limited overall during the third quarter of 2012.  There were only a total of 28 new properties listed for sale in this price range in all of the third quarter of 2012.  There were also only 13 properties that sold in this price range during the third quarter of 2012.  11 out of 13 properties that sold were in the northeast part of Tallahassee, and 22 out of 28 properties listed for sale were in the northeast part of Tallahassee.  Total sales decreased from 16 to 13 sales from third quarter 2011 to third quarter 2012.  The year over year decrease in sales came from the southeast part of Tallahassee.  The number of properties listed for sale also decreased in this price range in the third quarter of 2012.  Listings decreased in all areas of Tallahassee except in the southwest where there was no listing activity in the third quarter of 2011 or the third quarter of 2012.  

The average sales price for homes in this price range went up by about 2.5% which is a good sign.  However, this is not a big surprise since distressed sales only accounted for 7.7% of total sales in this price range during the third quarter of 2012.  The average number of days it took to sell a homes for homes in this price range in the third quarter of 2012 went up quite a bit from the same time period a year earlier which is not a good sign.  

Overall it seems like the market for homes in this price range is getting better.  While the number of listings and sales are down, prices are up.  Again this is most likely because prices are not being held down by a high number of distressed sales like homes in the lower price ranges are.  As long as the distressed sales/total sales ratio does not go up, the market for homes in this price range should continue to improve.

Year Over Year Market Statistics for the $750,001+ Price Range

Northeast Tallahassee

• 25% increase in the number of properties listed for sale (15)
• Decrease in the number of properties listed for sale from 6 to 0

Northwest Tallahassee

• Listings decreased from 3 listings to 0 listings
• Sales decreased from 1 sold property to 0

Southeast Tallahassee

• Listings decreased from 3 listings to 0 listings
• Sales decreased from 1 sale to 0 sales.

Southwest Tallahassee

• No Sales or Listing activity in either 2011 or 2012 during the 3rd quarter

Summary of The $750,001+ Price Range

Activity in this price range during the 3rd quarter of both 2011 and 2012 was very limited.  There were actually no sales at all in this price range reported during the third quarter of 2012.  This is down from 8 sales during the third quarter of 2011.  There were actually 16 properties listed for sale in this price range during the third quarter of 2012 which was down from 18 properties listed for sale during the same time period a year earlier.  The lack of activity for homes selling in this price range during the third quarter of 2012 most likely has to do with overall price declines in the market as well as the overall trend of people scaling down in home size which the bad economy has forced people to do.  

      

3rd quarter year over year Market statistics for Leon County in a Nutshell.

Year over year 3rd Quarter Tallahassee Residential Real Estate Market Statistics in a nut shell.

-There was a  3.6% increase in the number of properties listed for sale in Leon County in the 3rd quarter of compared to the same time period in 2011

-There was a 4.4% increase in the number of homes sold in Leon County in the 3rd quarter of 2012 compared to the same time period in 2011.

-Home prices were down by 3.1% in the 3rd quarter of 2012 compared to the same time period in 2011.

-The average sale price/listing price ratio (what a home actually sells for compared to what it is listed for sale at) increased from 94.51% in 2011 to 96.04% in 2012.

-The average number of days it took to sell a home in the 3rd quarter of 2012 decreased 8.7% from 138 days in the 3rd quarter of 2011 to 126 days in the 3rd quarter of 2012

-In the 3rd quarter of 2012 distressed sales (foreclosures and short sales) made up 23.1% of total residential property sales. That is an increase from the 3rd quarter of 2011 when distressed sales only made up 18.1% of residential property sales.

Distressed property sales usually sell at a discount compared to non distressed property sales.  This increase in the proportion of distressed sales most likely explains why year over year prices are down in Tallahassee in the 3rd quarter of 2012.  With banks increasing the number of foreclosure properties they are releasing on to the market Leon County, we can expect this trend to continue into at least the near future.   The year over year increase in the number of properties sold in Leon County in the 3rd quarter of 2012 along with the decrease in the average number of days it takes to sell a property in Leon County and the increase in the average sale price/list price ratio all indicate that our real estate market is headed in the right direction.  However, the negative impact that the increasing amount of distressed sales is having on home prices is currently outweighing the positive affect that the increasing demand has on home prices giving us an overall price decline.