There are a handful of Tallahassee neighborhoods that I take the time to write about on a quarterly basis due to their significance in number of annual home sales or amenities, and Summerbrooke is a Northeast Tallahassee subdivision that I have included in this list for several years. The combination of location (NE) and amenity (Golf Course) make this one to watch.
While I am not partial to the Summerbrooke golf course (too narrow for my wide tee shots), there are many spectacular homes located in this upper-end Tallahassee neighborhood. Homes both on and off the golf course offer the kinds of bells and whistles that many affluent families in Leon County are seeking.
Are Home Values Stabilizing In Summerbrooke?
One of the hardest things to measure is price stability as we look higher and higher on the pyramid of home values in Tallahassee. When there is plenty of liquidity (many homes selling) in a price range, we can say with great confidence what is occurring as far as value movement. But when sales are sporadic, we have to look deeper into what the data really says.
In the real estate graph above, average values values (red line) appear to be stabilizing, while the number of homes selling each month in Summerbrooke (blue bars) has returned to a historically normal amount. While this appears to be really good news for Summerbrooke, I’m wondering why it is different than the rest of Tallahassee (which is still seeing price declines and unit sales are down to roughly 60% of historically normal rates).
Why Average Home Values Can Fool You
The problem with taking an average of anything is that “average” is so hard to measure. Average is even harder to measure when the “middle of the road” is not representative of either extreme. In Summerbrooke for example, homes are built on 1 of two types of lots. Either they are “premium” lots, meaning the home is directly on the golf course on or a lake, or they aren’t.
Premium lots are more valuable than non-premium lots and most often, the homes built upon premium lots had more features and amenities built into the homes than did their counterparts on non-premium lots. So why does this matter?
The graph above shows a rise in the rate at which premium homes are selling in Summerbrooke. Back in 2005, roughly 1 in every 4 homes was on a premium lot, while currently more than half of recent sales have been on these higher value sites. This means that the “average” home recently is different than the “average” home of the past.
The first graph paints a picture of price stability, when in fact we are seeing buyers move towards the premium homes on golf courses and lakes. Were we to do an analysis comparing “apples to apples,” we would see a similar decline in home values as we have in the rest of Tallahassee.
This case study is a graphic example of why working with an expert can save you money when buying or selling a home in Tallahassee. There are many opportunities in Tallahassee real estate right now, but there are also pitfalls that you should steer clear of. If you think now is the time for you to sell, or buy, or both, just drop me a note and we can get help you develop a winning plan.
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