If you are planning a move in 2013, it is important to keep a close eye on Tallahassee home prices and values to follow the trends.
The changing trends will allow you to understand the negotiation balance when you attempt to sell a home in Tallahassee and then also when you buy a home as well.
As we observe in the real estate graph above, Tallahassee home values are still nudging downwards.
Tallahassee Home Prices Versus Values
The first thing to understand is that average home prices and average home values are two different things.
Average values reflect real estate appreciation / depreciation; it is the change in what home sellers are receiving from buyers. Simply put, it is the apples to apples comparison of what homes are worth.
Average home prices on the other hand represent the average amount of money that buyers are paying in the market. It is reflective of how much they can afford, not what they are buying. $250K spent today might or might not buy as nice a home as $250K spent last year. The ability for buyers to spend $250K relies on interest rates and the ease of obtaining borrowed funds.
Thus average home prices is not a measurement reflective of what homes are worth, just what buyers have been spending.
In the graph above, average Tallahassee home prices each month were plotted in red, while average home values were plotted in green. Their corresponding one-year trends are shown as well.
Currently, both Tallahassee home prices as well as Tallahassee home values are on the decline, but we should expect something interesting to occur by year’s end.
How Tallahassee Home Prices And Values Will Change
As homes below the median begin to become more scarce, we will finally see and end to depreciation of these homes. Homes in the upper end price ranges will continue to decline for several more years, but don’t expect $140,000 to face much more pricing pressure.
In recent years, all Tallahassee home price ranges were moving together. Values were dropping, while average prices were generally falling with occasional upward spikes. But 2013 should mark the end of this.
We are seeing supply and demand balance in certain (lower) price ranges, while higher price ranges still have many years to go before a market equilibrium will be found. This means that graphs like the one above are purely for market overviews, not for homeowners who need to make decisions.
Homeowners should rely on our Monthly Real Estate Market Report, which breaks all areas and all price ranges down for useful analysis.
Of course, if you are thinking about buying or selling a home and want to know how specific Tallahassee home prices will impact your move, just drop me a note and we can schedule a time to help you get started wisely.