For the past few blogs, I have been featuring neighborhoods from around the Tallahassee real estate market. We have analyzed them based upon recent sales history, as well as current inventory. Most of these Tallahassee subdivisions have been ones where the homes were priced above the median price in the Tallahassee real estate market, so for today I will feature a Tallahassee neighborhood where the homes are priced within the parameters of affordable housing in Tallahassee.
Richview Park is a town home community in Tallahassee located near downtown, just off of Richview Road (which connects Park Avenue to Apalachee Parkway). A savvy home buyer could have purchased a two-bedroom unit in 1991 for $55,000. That unit would have sold last year for an annual appreciation rate of 5.8%! That is a fabulous return. Considering that home buyer would have leveraged the property, a unit owned in the Richview Park subdivision over that period of time would have beat the stock market dramatically (assuming a 20% down payment and market rents, the internal rate of return on this investment would have been greater than 15% after taxes).
So, lets take a closer look at the Richview Park neighborhood (from a geeky numbers sort of way). Pulling up the most recent numbers from the Tallahassee Board of Realtors MLS yields the following chart:
The first thing that I notice is that only one home is for sale, and we saw nine sales last year. That means that there is less than two months supply. The next thing to note is that we see the home for sale, as well as the ones that failed to sell, were priced quite a bit higher than those which sold.
This chart better shows the pricing of the sold units versus the ones that did not sell. Makes perfect sense.
Buyers bought when they saw value. There are only four unit sizes in Richview Park (based on the tax records). They are 936 square feet, 984 square feet, 992 square feet, and 1044 square feet. Based upon the graph above, it seems like last year the larger ones were selling and the smaller ones were not. Finally, lets look at the 17 year history of the Richview Park neighborhood in Tallahassee and see what it looks like.
This is what every investor wants to see. Richview Park has a wonderful price trend moving skyward (red line) and great stability in the unit sales (blue bars). You can tell this subdivision was built in the early 90's by how heavy the sales were in 1991 and 1992. Is there a neighborhood in the Tallahassee Real Estate Market that you would like reviewed? If so, add a comment with your name attached below and I'll endeavor to make a blog of it in the near future.
Joe Manausa is the Broker and Co-Owner of Century 21 First Realty. He can be reached by clicking on the comments button below, via e-mail through his company website at http://www.manausa.com/, or by calling (850) 386-2001.