The Florida Association of Realtors reports that higher median home prices, more new listings and a slight rise in inventory in April show that the real estate market continues to improve.  "Florida's strengthening economy and increased jobs outlook are positive signs for continued growth in the state's housing market," said 2014 Florida Realtors President Sherri Meadows.

Another very positive note is the sharp drop in short sale homes. Economists believe this is due to rising prices which give more homeowners equity. Economists expect this trend to continue all around the country.

Tallahassee has lagged other Florida cities in the rise of home prices.  While Florida overall has seen about a 4% increase in home prices; Tallahassee has seen under 1% increase in home prices.     


 

Good real estate market, or bad?  Yes.One of the common complaints we hear as real estate agents from would-be home sellers is that Tallahassee home sales are not good.  This is not a good real estate market, they say.  So, is this a good real estate market, or bad?  The answer is yes.

Depending on how you define “good real estate market”, defines how you view the market.  It goes like this:


It’ a Bad Real Estate Market if

• You bought your home in 2007 and are $30,000 underwater
• You live in a newer neighborhood like Dry Creek Run where homes have dropped 75% in home value since they were built in 2006.
• You live on a street with several foreclosed homes that have been vacant for 2 or more years.

It’s a Good Real Estate market if

• You live in one of the many Tallahassee neighborhoods where home values have risen 5% in the past year.
• You bought a home at the 2011 market bottom, and have made $10,000 in equity since then.
• You bought your home in the 1980s and are sitting on $100,000 of home equity.
• You see homes on your street sell in 60 days or less.

The truth is Tallahassee home prices, as an indicator of Tallahassee home values, have risen by 4 to 5% over the past year.  2013 home values are at about the same level as home values in June 2004 as measured by Freddie Mac’s Home Value Index.  Did you hear anyone in 2004 say “My home value stinks”?  I didn’t hear that either.  Yet home sellers complain about it today because they are comparing values to the bubble prices of 2006 and 2007.  So, yes, it is a good and bad market, depending on your circumstances.  One day, though, it will be a good market again… for everyone.

How fast has your neighborhood home values been rising?  Call us 850.445.2476.

The Case Shiller Home Price Index, one of the most respected indicators of home values, increased by 8.1% in January, its fastest rise since before the housing bust.  All metro areas in the 20-city index posted home price gains, and every city except Detroit showed accelerating gains.  

While Tallahassee home values are not included in the index, the closest metro areas did very well:  over a 1-year period Atlanta increased 13%, Tampa improved 8%, and Miami surged 10%.  Tallahassee tends to lag these metro areas in price trends by a few months, but there seems no doubt that home values and prices have moved off the bottom of a long 6-year fall. 

The National Association of Home Builders released their Improving Markets Index this week.  The IMI continued to expand for the seventh straight month to include 274 improving  markets.

Tallahassee is one of 18 Florida home markets on the list.  The  index measures 3 economic factors: housing permit growth, home price increases,  and employment growth.  All 3 measures in Tallahassee show significant increases  since they bottomed out about a year ago:

Housing permits: Up 2.4% since  bottoming in Dec 2010
Home prices: Up .62% since bottoming in Feb  2012
Employment: Up 2.62% since bottoming in May 2012

Home values  continue to improve in Tallahassee across many
neighborhoods.  Go to www.FreeTallahasseeValue.com for your own custom
home value analysis.     

Since the onset of the housing market crash in 2007, it's been 5 years of home value declines.  Could 2013 be the year of rising values? In other markets like Phoenix and Miami, home prices are definitely rising - and rising rapidly.  In Tallahassee? Not so much. 

Freddie Mac, the government sponsored mortgage giant, keeps a home price index of all metro areas in the US.  Freddie Mac's Tallahassee home price index shows a very up and down trend .  In December 2012, the index showed about a 6% rise in prices year over year.  But in March, the index shows about a 1% decline.  

So, it appears we are on the verge of a sustained home value rise, albeit a very slow, moderate rise.  

Fill out our submission forms to receive a free home value analysis of your home. Or call 850.445.2476.