Forecast Calls For Home Prices Dropping in 2010

By
Real Estate Agent with Joe Manausa Real Estate 8508880888

The Tallahassee area logged 163 single-family existing-home sales in October, down 5 percent over a year ago which is not as good as many other areas in Florida that seem to show gains in every market measured. Of course, those measurements are from REALTOR® MLS reports, which typically do not show much more than 1/2 t o 2/3rds of the entire market activity.

The median price for those local sales gained 1.2 percent to $174,000 from $172,000 in October 2008. Fort Walton Beach was the only other market in October to see prices rise, up 1 percent from a year ago.

Graph Of Home Prices In Tallahassee, Florida

Graph of Home Prices In Tallahassee Florida

The real estate graph above shows that the average price continues to drop, while the median price has actually been recovering. Unfortunately, the graph does not depict appreciation or depreciation, as it shows what home buyers are paying without regard to what they are buying.

Tallahassee Housing Market Sees Slight Increase In Home Sales

This is wonderful to report, as we have been producing reports showing the number of homes selling in Tallahassee declining for over 3 years running! Based upon the growth in pending home sales, it appears like the market is starting to turn around.

Tallahassee Real Estate Housing Inventory Daily Pending Contracts

Much of this could be due to the First Time Homebuyer Tax Credit which was scheduled to terminate at the end of November, but with the extension, buyers have until June 30, 2010, to close on their purchase, and the rules no longer limit the credit to first-time buyers. Hopefully this will continue the rise in pending home sales.

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Rainmaker
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Kevin J. May
Hobe Sound, FL

Very interesting Joe, a quick check here shows the same average starting point at about $200K although we're now at about $300K.  Your March dip, any rationale for that, just curious?  Have an excellent Thanksgiving!

Nov 25, 2009 12:07 PM #1
Rainmaker
785,447
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Hey Kevin, I assume you are referring to the "mode" measurement of $120K. The mode measures the most recurring number in a group, so during the month of March, more homes sold for (EXACTLY) $120K than any other sales price. The median (Middle) price was $147K and the average price was $195K.

I suspect it was a fairly normal month, but maybe several homes were sold right at $120K.

 

Have a great Thanksgiving too Kevin (I like your new picture :) )

Nov 26, 2009 10:44 AM #2
Rainmaker
517,329
Kevin J. May
Hobe Sound, FL

Thanks for the explanation Joe. that's a statistic I have not added in my analysis' here.  The Turkey will be around through Sunday at least, then I'll go back to a more normal picture if I can find such a thing. 

Nov 27, 2009 11:51 AM #3
Rainmaker
641,941
Valeria Mola
SIB REALTY - Sunny Isles Beach, FL
305-607-0709 SIB Realty

Grear post.

Our market is little bit different- condos, and I can see the prices are getting higher in our area. Happy Holidays to all of us and more sales!!!

Dec 18, 2009 08:25 PM #4
Rainmaker
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Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thank you Valeria and happy holidays to you too.

Dec 19, 2009 06:46 AM #5
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Rainmaker
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Joe Manausa

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