There really has been no great reference available (until now) for people who are interested in high end houses in Tallahassee.
You can use most property search tools to see what is on the market, and you can occasionally find a report on high end homes, but where do you go to see an analysis of the rarefied houses that sell for a high ends or higher in the Tallahassee real estate market?
Well, today's article can be a good starting point.
High End House Thoughts
I have been concerned for the top of our market for quite some time, as house sales are doing very well, despite the rest of the market will continues to struggle along. While this is good news, I think it might be masking a growing problem in Tallahassee.
As I continually study the forces that drive the Tallahassee housing market, I look to economic drivers (jobs and job creation) and do not see anything that says Tallahassee is booming and there is a solid growth of the types of positions that require high end homes.
But take a look at the current production of the most expensive houses in Tallahassee. This list includes houses that have been sold and recorded in the Tax records, so there are those not accounted for if only the land sale was recorded.
When I look at the explosion of these houses in the past 15 years (zero houses have been built and sold between 2011 and 2014), I have to wonder who is going to buy them.
Sales have been steady over the past few years, but I suspect it has a lot to do with interest rates hanging around historical lows. Take a look at historical interest rates to see just how low they really are today.
I do not think it is a coincidence that high end house construction began to soar when low mortgage interest rates (cheap money) became available.
Right now, you can borrow money at 1/2 of the 50 year average rate. This (I believe) is what is buoying the high end of the market. If mortgage interest rates return to normal (or worse, above normal), the amount of high end house buyers will be cut by more than half.
So to whom will today's high end house buyers sell their houses when this happens? The amount of these houses in the market going to force Tallahassee to grow, or we will likely see a lot of losses "at the top" in the coming years.
Houses For Sale
The following is the most recently listed houses for sale in Tallahassee priced from $1M and up.
This is a list, going back to 1991, of houses that sold for $1,000,000 or more.
I hope you enjoyed our Million Dollar Houses Report, if you would like to know more about the high end market in Tallahassee, just drop me a note and we will reply promptly.