It has been quite some time since we have reviewed residential lot sales in Tallahassee, and our update is quite revealing in terms of where the housing market is heading.
Currently, there are 623 residential lot for sale in Tallahassee, which represents more than 1 lot for sale for every 4 homes for sale.
Additionally, there are many more that are not listed, and we will see this abundance of developed residential lots continue to impact the Tallahassee real estate market.
In many Tallahassee neighborhoods, home builders are able to buy residential lots cheap and thus bring homes to the market at prices consistent or below existing home sales prices.
REMINDER: In case you missed our last blog post, we are running a contest and giving a way a FREE iPad for whomever guesses the final sales price of a home that will be hitting the market this weekend. Your entry must be submitted before the property is listed in the MLS.
Simply go to that blog post here --> Tallahassee Real Estate Blog, and enter your name, your email (which will only be used to notify the winner), and the price at which you think the home will sell.
Win A Free Ipad - Guess The Price ... click to tweet
I will shut off entries once the property hits the MLS, so hurry and get your opinion of value recorded today. In case two entries are the same, the one that is entered first will be the only awarded winner. In case of a tie, the price nearest without going over will win. The winner will be awarded the iPad after the sale closes.
Residential Lot Sales In Tallahassee
The following graph shows that residential lot sales in Tallahassee have started to rise as land values decline.
In the real estate graph above, the green area shows that the number of residential lot sales are up 50% since the bottom of the land market in 2009 (currently averaging about 63 sales per month), while average values have dropped below $40,000.
The abundance of cheap residential lots could very well be a siren's song for home builders desperate to get their crews and sub contractors back to work. With the supply of homes for sale in Tallahassee already on the glut side, these new homes are taking the place of existing home sales which need to clear the market sooner or later.
I worry that these pockets of new construction might drive home values even lower in the neighborhoods that are seeing the greatest amount of construction.
Buying Residential Lots In Tallahassee
If you are thinking about purchasing residential lots in Tallahassee, you should equip yourself with an excellent buyer's agent. The market has many more offerings than can be found online, and a buyers agent will help you get the best deal to be found.
If you would like to know more about buying residential lots in or around Tallahassee, just drop me a note and we can schedule an interview to help you discover how we can help you make the best purchase possible.
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