Leon County Update Summary

I am going to take a few minutes on today's blog to give a thumbnail summary of where I see the market right now in Tallahassee, Leon County, Florida. Sorry I have to inculcate some numbers but they tell the story most effectively. These numbers are made available through May 2008. They are reported by Tallahassee Real Estate Trends N Data Services Numbers are compiled by Mr. Don Pickett, a veteran Realtor, who is oft quoted in our local press. I have respect for Mr. Pickett and his reporting efficacy. He has served as the chairman of our MLS Statistics committee for many years past.

Closings through May 2008: ..............................................364
Closings through May 2007: ..............................................714
Differential ...................................................................-50%

Closings for year ending May 2008: ..............................3630
Closings for year ending May 2007 ................................4740
Differential....................................................................-23%

New listings for Month of May 2008 ............................... 759
New listings for Month of May 2007 ...............................1161
Differential....................................................................-35%

Days on Market YTD May 2008 ....................................... 75
Days on Market YTD May 2007 ....................................... 75
Differential..................................................................................... -0-

Median Price thru May 2008 .................................. $235,000
Median Price thru May 2007 .................................. 239,000
Differential.................................................................... -2%

We can see that fewer sales are transpiring in Tallahassee. I believe our citizens are reacting to the constant harangue of negative news in the media. Buyers are postponing purchases. We also see that there are fewer new listings, comparing May 2008 to May of 2007, suggesting that our Sellers are postponing putting their houses on the market.

Number of days it takes to sell a property, May '07 vs May '08 is almost the same number. That figure relates to those properties that have been closed. It does not give us a feel for those that have languished on the market for a long period of time, not closing. We can tell as we drive neighborhoods and look around in our own neighborhoods that there are some pretty stale "Homes for Sale" signs standing out there. This is largely the cause of Sellers pricing their homes too high. It is a hard reality to understand that homes are not selling for the same dollar as they did two years ago, during the real estate boom.

Looking at the number for median price we see a relatively flat line. The graph reflects a minimal change in value of median price. In other words the runaway appreciation that was going on during the boom of 15-16%, per year, is behind us. We are lucky in Tallahassee to have held our own during the "bursting of the bubble". You move to Miami, Tampa, Orlando you will see a huge drop in median price. The speculation that occurred in those areas was not as intense here in Leon County. Hence we have had a fairly soft landing here in Tallahassee.

If you are a Buyer you have never been in a better position to buy. Inventory is large and demand is low, driving prices downward. If you are a Seller the news is a tad mellow compared to our robust run of the last 4-5 years. However, you can still sell your house. The approach is more measured and you need to adjust your thinking of a year ago. I advise my Sellers, just off the cuff, to take the number they have been nursing for the last year and drop it by 10%. Make your listing shine and be patient and you will sell your property.

I am not objective but I feel that the services of the professional Realtor in selling your home and or buying a home has never been more important. There are a lot of new circumstances in the market place that have newly planted themselves. Your Realtor is the best source of advice on the new market.

Please visit me on my website at http://elvass.com/.

Enjoy the beautiful music of Ms. Ann Murray: http://www.youtube.com/watch?v=zqUUQElQ8kM