Does The Age Of A Home Really Matter?

By
Real Estate Agent with Joe Manausa Real Estate 8508880888
https://activerain.com/droplet/klw

Distressed-Home-Sales-By-Age-Of-HomeI was driving my 11 year old son Max to his football game yesterday and he mentioned that they were studying "Music History" in school. He went on to mention that they went all the way back to the 1960s ... I told him that wasn't music history, that was still pop music!

We discussed the music produced in the 1960s, and he mentioned that they learned about the Beatles, but not about the Rolling Stones (what kind of music class wouldn't mention the Stones?) And it got me thinking.

If you saw the blog I did yesterday on REO and short sales in Tallahassee, I provided a map to the distressed home sales in Tallahassee for the past few months. Having this data still handy, I wanted to further explore patterns of where our most challenged homes were being sold. My conversation with Max gave me the thought to compare the age of the homes sold with the level of distressed properties for sale in Tallahassee to see if there was a correlation, and here is what I found.

Distressed Home Sales By Age Of Home

I pulled all of the home sales in the Tallahassee MLS from January 2009 to present to see when they were built, and how many of each decade were distressed home sales.

Distressed Home Sales By Age Of Home

In the real estate graph above, we see that newer homes and older homes appear to be performing worse than the homes built in the 1980s and 1990s. It appears as if the age of the home and the percentage of them being distressed inversely mirrors the quality of the music from that era :), except of course for the newer homes.

Map Of Recently Built Distressed Home Sales

I think the reason that newer homes are at such a high level of distress is that many new home buyers over the past 10 years were utilizing the easy loan programs that helped created this real estate market meltdown. Low interest ARM products were used by new construction buyers to create a temporary lower payment term, which allowed them to pay the premium for new homes in 2004 through 2006. Now that these adjustable loans are converting to term loans, the payments are out of the range of those who purchased them (gross over-simplification, but definitely on point to the causation).

Distressed Home Sales By Zip Code

Another interesting view of distressed home sales in Tallahassee is one arranged by zip code. The real estate graph below shows that not all zip codes are equal, with the 32310 zip code reporting 43% of the homes sold were distressed, while the opposite end of the spectrum in 32308 was reporting "only" 14% of the homes sold were distressed.

Distressed Home Sales By Zip Code

List of distressed home sales in Tallahassee

 

Please check back again for more distressed home sales reports on the Tallahassee Real Estate Website.

 

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Rainmaker
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Atlanta's Home Inspector, David Lelak IHI Home Inspections
IHI Home Inspections 404-788-2581 - Canton, GA
Experience the IHI Difference

Great information with wonderful visual references. You spent a lot of time researching this and assembling the blog. This would make a great report or class (if you teach them) Have a great day! :)

Sep 28, 2011 03:50 AM #1
Ambassador
837,516
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Buyers ask me about home ages and i always say of the home is 10-15 years old everything is about to go. If it is older it has already gone and been replaced. So consider that when buying. Obviously an inspection is in order to verify. And yes What's up with dissing the stones??

Sep 28, 2011 06:25 AM #2
Rainmaker
1,162,127
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thank you David and Bonnie. I was just getting off on a tangent ...

Sep 28, 2011 07:09 AM #3
Rainmaker
1,162,127
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Charlie, I was shocked. What kind of education is it when a child learns about the Beatles, but not the Stones?

Sep 28, 2011 07:10 AM #4
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Rainmaker
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Joe Manausa

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