The following is a five year review of the Tallahassee Metro Area single family detached homes, both new and resale, beginning with the third quarter of 2003. Up to this quarter our real estate market in the Tallahassee area was very stable. The average median appreciation was between 2% to 7%, the supply of homes and number of sales holding a parallel amount and a usual time on the market of about sixty days. Everything stayed in good balance through the end of the third quarter of 2005 except for the median appreciation which ended 2003 with 10% and rose to 18% in 2005. Greed had entered the real estate market place in the 2003 through 2005 period with investors aplenty. Stocks had lost their luster beginning in about 2000 with the fall of the dot coms and real estate had always been a very good investment. So everyone joined in the buying frenzy to move up to a bigger home, buying a vacation home, rental properties and just speculating by buying and putting property back on the market at a higher price or just contracting and "flipping" for a quick profit. The wise investor got out of the real estate market in 2005. The ones that did not, you know the rest of that story. Since the end of the third quarter of 2005 the number of homes for sale has doubled while the number of sells has dropped more than half. The median appreciation dropped to 8% in 2006, 2% in 2007 and so far in 2008 it has dropped about - 7%. The supply of available homes has increased about five fold which is over a years supply. While the number of homes on the market has leveled out since the end of the second quarter of 2007, the number of homes sold has continued to drop during this period. Additionally, there are more homes coming on the market every day and fewer buyers. It is a great buyers market with plenty to select from, great interest rates and plenty of home mortgage money.
Don Pickett, Realtor, Coldwell Banker Hartung and Noblin, Inc. Tallahassee Real Estate N Data Services, 850-591-4725, donpick@aol.com Search the entire Tallahassee Area Real Estate Market.
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