There are fewer distressed houses being listed for sale in Tallahassee today than there were at this time last year.
The difference is less than 1%, but it's a positive sign that we have been anxiously awaiting since the collapse of the Tallahassee housing market in 2006.
Today's article has 2 graphs that focus on the non-investment segment of our market, featuring houses for sale in Tallahassee that are priced above $100,000.
Distressed Houses In The Market
The number of short sales and foreclosures (priced above $100,000) coming onto the market right now is increasing, but it was also increasing at this time last year. I suspect this is a seasonal issue where people are making decisions based upon "another year ending" and the need to move on.
Our first graph shows the thirty-day trend of new listings (above $100,000) entering the Tallahassee housing market, with the green bars showing the average price and the brown line showing the percentage of distressed listings versus the overall market.
At this time last year, more than one in three homes being listed for sale in Tallahassee were short sales, pre-foreclosures, or foreclosures, whereas this year that number is less than one in four.
Long Term Trend
When we look at the longer trend, we find that over the past year, less than one in five homes for sale in Tallahassee are being marketed as distressed properties.
The blue vertical lines show that the average price of a new listing (looking only at homes priced over $100,000) has declined slightly (less than one percent), and the ratio of distressed homes for sale versus all homes for sale has declined slightly too. I am a bit surprised to see these two trends work in the same direction. Wouldn't you think that fewer distressed homes would result in a rising average asking price?
There are still some great deals to be found in the Tallahassee housing market. The key is to have a plan that allows you to accomplish your most important goals. Best price? Time frame? Location? Combination of all three? Whatever your goals, a well-thought-out plan will be the best way to achieve success.
We would like to help. If you are thinking about buying a house in Tallahassee, please drop me a note and we can schedule a time to show you a smarter way to buy.
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