Real Estate Agent with Joe Manausa Real Estate 8508880888
Buckhead home sales have weathered the market a little better than most neighborhoods in Tallahassee. With values down 26.4% since the peak of the market, valuations have dropped similarly to the rest of the Tallahassee housing market. But unit sales today are very much consistent with the average number of sales for the past 15 years, with only marginally fewer sales.
Considering the rest of the market has seen unit sales drop significantly higher, I would say that Buckhead home sales have proven this high-end Tallahassee neighborhood to be a “better than the market” place to own a home for the past 10 years.
The real estate graph above shows that the average Buckhead home sales price has dropped from $579K in 2007 to $355K in 2010, which is nearly a 39% drop. But we don’t use “average price” to determine real estate depreciation, but we can estimate it by using the change in average price per square foot.
Buckhead Home Sales Drop 26%
We can use a graph of the average price per square foot for Buckhead home sales to get a better feel for the depreciation that has occurred. The green area shows the rapid rise and subsequent fall of home values in this Northeast Tallahassee subdivision.
Building A Home In Buckhead
We often get requests for help from people who are considering having a home built for them. With interest rates at all-time lows and most builders very hungry for work, it is an optimal time to consider building. My only warning point would be to study the market and ensure there is not a an existing home for sale in Buckhead that would satisfy your needs. Most likely, existing homes will sell cheaper than newly built ones.
But if you want to build your own dream home in Tallahassee, there are a few short sale lots available that will save you money compared to the homes that were built after 2006. If you can negotiate a great value with on one of these, you most likely will be well situated when the market returns.
Short Sales In Buckhead
The following two short sale lots are situated in prime Buckhead locations, and are offered at more than a $50K discount to what they would have sold at the peak of the market.
In essence, this gives the next buyer a near $20 per square foot advantage when building compared to have doing so in 2006. When you factor this discount in with the super competitive nature of the new construction market, a wise buyer can build a home that will be well suited for resale in the coming years.