What Caused The 50% Decline In Condo And Townhouse Prices?

By
Real Estate Agent with Joe Manausa Real Estate 8508880888

Tallahassee condominium and townhouse prices have finally joined single family detached homes with a dramatic drop in their average prices, according to the newest information recorded at the Leon County Property Appraisers office.

Average Condo Prices In Tallahassee

The sales of condominiums in downtown Tallahassee, which are relatively new to the Tallahassee market, were bolstering the average sales price of condos and townhouses for the past several years.

Even though we were measuring depreciation at very similar numbers as single family detached homes, the actual average price was remaining stable as expensive condos downtown were keeping the average up.

But downtown sales have stopped and the rest of the Tallahassee condominiums and townhouses are having a greater impact on the overall average.

The average price trend has reached $95,000, which is consistent with the average condominium and townhouse price last seen in May 2003.

Unit sales figures have trended down to levels last seen in May of 1996, with the current monthly average at only 38 units per month.

The glut of available condominiums and townhouses that were over-developed during the housing boom most likely means that pricing pressures will exist for many more years, and we can expect falling condo and townhouse prices.

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Joe Manausa Real Estate
1934 Dellwood Drive
Tallahassee, FL 32303
(850) 366-8917

Comments (4)

Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

So many reasons.

A common theme is the disadvantage of living under the rule of association board members.

Aug 20, 2011 01:18 AM
Joe Manausa - Tallahassee, FL
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Not for us Dave, though that certainly is an issue that exists. It's just a new market that has created an apparent rise and fall of prices. Our downtown condos were selling at high prices, now they're not selling, and they have a weighted impact on the overall market.

Aug 20, 2011 01:29 AM
Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

Miami had the same problem-over built when there was easy financing. It is recovering but you have a smaller market that is not heavily foreign. Also the 20-30% down now required is a deal killer so the prices have to drop.

Aug 20, 2011 01:45 AM
Joe Manausa - Tallahassee, FL
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Marco, you're right. We have almost zero foreign market here (unless you count South Florida politicians :))

Aug 20, 2011 04:40 AM