A review of Tallahassee home sales in peak period of summer for 2022 | Donald Pickett
In keeping with the typical pattern of home sales, we see the increase at the beginning of spring.
The upswing began in March and peaked in June and began to decline. “Getting the home address in time for school.” Some very large businesses consider this in their timing of moving employees.
To get a picture of how we did during this year’s peak in home sales, I used the month of July to compare to the previous two years. In June we closed the highest number of sales; but I believe July gives us a better example of the peak for comparison. The results are shown in the displayed graphic.
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When you look at the Leon County data (source is from the Florida Realtor website), it is clear two things are illustrated, the number of available homes for the buyers is decreasing and, the price the buyers are paying for a home is increasing. The old principal of supply and demand. And the sellers are selling their homes for more.
This is working great for the seller that does not need or want to purchase a replacement home. or the Northeast area of Leon County, I used our local MLS (Multiple Listing Service) which does not provide the history of inventory. It all is live data that is continually changing. The data I show in the graphic for July was what I found on the 1st of August at random.
You see on the graphic the sold price went up 19% in the county this past year. You hear what a home near yours sold for recently. You smile thinking about how the value of your home has appreciated in recent years.
The Leon County Property Appraiser sees that as well as your home insurance company. That smile may have gone away when you saw the recent notice from the Leon County Property Tax Collector of your projected 2022 property tax. And maybe your home insurance company is considering replacement cost when they are calculating your payment.
How has the recent increase of interest rates for a mortgage impacted our home sales?
I have been in real estate long enough to remember when the rate went up to 19%. When the FHA/VA fixed rate came down to 14%, we thought that was manageable. So now the rate is around 6% and may still go up soon.
I don’t hear any loud bells ringing. Yes, it has made an impact on low-income borrowers not being able to qualify for a mortgage.
One of the reports I include in my monthly reports I send to my paying subscribers to TRENDS, is a graphic showing the Median Prices of homes for the State and Leon County. While the prices have been increasing for the past two years for both, the state started to decline in May.
This relates to another report of number of sales and inventory.
The state began a decline in the number of sales in May and a very sharp increase in inventory in February. Leon County prices continue to climb. The number of sales declined for the first time in July and the inventory started a slow increase the first of January and leveled in July. Our July inventory this year is 20% less than in 2020.
Like about everywhere in the country, our inventory is very low. The crazy thing is, I don’t think we would have more sales if we had a larger inventory. The buyers just have less to choose from when shopping for a home.
Donald Pickett, Realtor, GRI, Tallahassee Real Estate N Data Services, Coldwell Banker Hartung. Email at donpick@aol.com.
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This article originally appeared on Tallahassee Democrat: A look at Leon County home sales during peak period of summer
