Tallahassee, FL – The year 2012 started with lower Tallahassee home sales than the year 2011. We have seen a rise in home inventories. In Tallahassee we currently have 2,098 active homes for sale. When including surrounding areas, that number increases to 3,172 active homes for sale on the market.
The high inventory coupled with very few homes for sale and the demand being steady, the price pressure will move home prices downward.
Additional price pressure comes from increased yet restrictive mortgage requirements, higher down payment requirements, more stringent appraisal requirements, and the buyer’s perception that prices should be lower than the values of the homes. Because of these influences, a 3-5% price drop is expected for 2012.
Short Sales and Foreclosures remain the highest portion of home sales in the Tallahassee market, and it is unlikely that distressed sales will decline.
And due to the increase in Foreclosure filings we have witnessed, the banks turn to faster and higher approval rates when it comes to short sales.
Many foreclosure and REO properties are listed as shadow inventory, meaning that these properties have not yet been entered into the market, and instead should be included.
Approximately 30% of home buyers in the market are cash buyers and expect a 10% discount on sale prices, since those offers are the strongest a seller can get.
However, homes with flaws and/or are priced incorrectly remain active longer and perhaps aren’t selling at all, and instead are forced to move towards becoming a rental property.
Buying and selling in this market requires a deep understanding of the history and pressures in each area of Tallahassee and its prices.
We hope that this Tallahassee market report gives you a better understanding and useful information to make an educated decision with your real estate transactions.
Please call us at 850-364-3946 if we can provide you with any additional information.