If you are planning on buying a house in 2016, you should know that the market has changed quite a bit (for some).
That means it would be wise to get prepared in order to have the proper expectations.
Tallahassee has had a glut of houses since 2007, so buyers have had the upper hand in negotiations for more than 8 years!
But times change.
Unless you are buying at the higher price ranges in the Tallahassee real estate market, you are likely going to be facing sellers who are receiving multiple offers. Thus, you should plan accordingly.
Type Of Houses Listed For Sale
The following graphs show the "middle" of the market, from the vantage point of inventory as it was being listed last year. The median house price, median house value, and median house size will give a good feel for the segment of the market that you will be working with.
Our first real estate graph shows the median asking price and median asking value last year.
The orange line (median house values) in the graph above shows that sellers are gaining confidence, as their expectations have risen consistently with the return of the housing market. The fact that the blue line (median house prices) does not exactly mirror the value line suggests that the median house size has changed.
The black line measures the median house size trend, while the blue line measures the trend of the total number of new listings each month. So fewer houses are being listed over the past 18 months, and they were getting smaller for most of 2015 until November.
In a nutshell, the median house at roughly 1,630 square feet, $182,000 in price, which means a rough value of $112 per square foot.
Using Median Home Data When You Buy
If you are getting ready to buy a house in Tallahassee, you now know where the middle of the market lies. If you are buying close to that price range, you must understand that is where the bulk of the other buyers are purchasing as well. This is highly competitive, so if you find a great deal, you should know that other buyers likely have found it too. Don't let a house like that sit. Immediately check it out and either eliminate it or buy it, because you likely won't have a chance to buy it tomorrow.
But the further you stray from the median house price in Tallahassee, the fewer your competitors will be. If you are looking at a seven figure house in Tallahassee, there are likely few buyers with whom you will be competing. You have time to consider the purchase without the likelihood of losing the house to another buyer.
Each area and each price range in the Tallahassee real estate market can be evaluated in the manner that we have done above, and you should work with a real estate buyer's agent who can clearly and concisely demonstrate to you where you will be in a real estate negotiation. Failure to understand your position has nothing but negative outcomes for you.
You can get started on your house search by reviewing our "best buy list." I strongly encourage you to enroll in our free e-course "Home Buying For Smart People," as we teach you a process that we designed to save you money while increasing your satisfaction with the house that you select.
Comments(6)