In 2023, the Tallahassee housing market is characterized by a prevailing seller’s market, indicating a higher demand from buyers compared to the available homes for sale. This dynamic has resulted in a surge in home prices and an accelerated pace of sales.
- Median Home Price on Redfin: $262K (Up by 4.7% in September from the previous year)
- Median Time on Market: 42 days
The likelihood of a Tallahassee housing market crash in 2023 seems improbable. Several factors contribute to this stability:
Reasons for Market Stability
- Strong Demand: The housing demand in Tallahassee remains robust, fueled by the city’s expanding population and thriving economy.
- Limited Supply: The scarcity of available homes for sale has driven an increase in property prices.
- Favorable Mortgage Rates: The prevailing low mortgage rates contribute to the affordability of home purchases.
Tallahassee, FL Housing Market Insights October 2023
Let’s delve into the key trends that define the Tallahassee, FL 2023 Housing Market according to data from realtor.com®.
Median Listing Home Price and Growth
As of October 2023, the median listing home price in Tallahassee, FL reached an impressive $306,000, marking a substantial 3.4% year-over-year increase. This upward trajectory signifies a robust real estate environment, making it a noteworthy trend for potential buyers and sellers alike.
Price per Square Foot
For those scrutinizing the market with a fine lens, the median listing home price per square foot stands at a competitive $193. This metric provides valuable insights into the cost efficiency and spatial value of properties in Tallahassee, FL, offering a nuanced perspective for prospective homebuyers.
Sale-to-List Price Ratio
The Tallahassee, FL housing market demonstrates a remarkable 99.77% sale-to-list price ratio, indicating that, on average, homes were sold for nearly the asking price in October 2023. This statistic showcases a balanced negotiation landscape, with buyers and sellers finding equilibrium in their transactions.
Market Dynamics: Buyer Balanced Seller
As of October 2023, Tallahassee, FL can be characterized as a seller’s market. This means that there is a higher demand for homes than the current supply, creating a competitive environment. Prospective buyers need to navigate this scenario with a strategic approach, recognizing the need for agility in their property search.
Median Days on Market
The metric of median days on the market is a crucial indicator of the pace at which homes are being bought and sold. In Tallahassee, FL, the median days on market stands at 42 days. This timeframe reflects the average duration it takes for a property to transition from listing to sale. The trend shows a marginal increase compared to the previous month but a slight decrease from the same period last year.
Tallahassee Housing Market Forecast 2023 & 2024
The Tallahassee housing market forecast provided by Zillow offers valuable insights into the current trends and future expectations for the real estate landscape in the area. As of September 30, 2023, the average home value in Tallahassee stands at $280,888, reflecting a 3.9% increase over the past year. Impressively, homes in Tallahassee go to pending status in a mere 9 days, indicating a swift and dynamic market.
Key Metrics (Data through September 30, 2023)
- Median Sale to List Ratio (August 31, 2023): 1.000
- Percent of Sales Over List Price (August 31, 2023): 38.2%
- Percent of Sales Under List Price (August 31, 2023): 39.8%
- Median Days to Pending (September 30, 2023): 9 days
Tallahassee MSA Housing Market Forecast
The Metropolitan Statistical Area (MSA) forecast for Tallahassee, FL, as projected by Zillow, outlines the anticipated changes in home values over the coming months. The forecasted values are as follows:
MSA, or Metropolitan Statistical Area, is a geographical region with a relatively high population density at its core and close economic ties throughout the area. In the context of Tallahassee, FL, the MSA encompasses not only the city itself but also surrounding counties that are economically and socially integrated into the urban core.
The housing market in the Tallahassee MSA is significant, reflecting the area’s economic vibrancy and population growth. This market encompasses several counties, contributing to its size and diversity. The exact counties within the Tallahassee MSA include but may not be limited to Leon County, Wakulla County, Jefferson County, and Gadsden County. These counties collectively form a dynamic real estate landscape, influenced by the broader economic trends of the region.
Should You Invest in the Tallahassee Real Estate Market?
1. Population Growth and Trends
The Tallahassee real estate market presents a compelling investment opportunity, primarily driven by the city’s consistent population growth and positive demographic trends. The influx of residents indicates a sustained demand for housing, a crucial factor for real estate investors seeking long-term profitability.
- Rising Population: Tallahassee has experienced steady population growth, fueled by factors such as a growing university presence, a desirable climate, and attractive job opportunities.
- Demographic Trends: Analyzing demographic trends, such as an increase in young professionals or retiring individuals moving to the area, provides insights into potential shifts in housing preferences and demand.
2. Economy and Jobs
The economic landscape of Tallahassee is a crucial consideration for real estate investors, as a robust and diverse economy contributes to the stability and growth of the housing market.
- Job Opportunities: The city’s thriving economy, driven by sectors like education, government, and healthcare, creates a consistent demand for housing as individuals relocate for employment opportunities.
- Economic Diversification: Tallahassee’s efforts to diversify its economy reduce reliance on a single industry, promoting resilience and mitigating the impact of economic downturns on the real estate market.
3. Livability and Other Factors
The overall livability of Tallahassee contributes to its attractiveness as an investment destination, considering factors beyond economic aspects.
- Educational Institutions: The presence of reputable universities and educational institutions enhances the city’s appeal, attracting students and faculty who often contribute to the rental market.
- Cultural and Recreational Amenities: A vibrant cultural scene, recreational opportunities, and quality of life factors can positively influence housing demand, making it an enticing prospect for real estate investors.
4. Rental Property Market Size and Growth
For investors focusing on rental properties, Tallahassee’s rental market size and its growth potential are pivotal considerations.
- Student Housing: With the presence of Florida State University and other institutions, the demand for student housing creates a reliable market segment for rental property investors.
- Job-Related Rentals: Professionals relocating for job opportunities contribute to the demand for rental properties, offering a diverse tenant base for investors.
5. Other Factors Related to Real Estate Investing
Several additional factors make Tallahassee an attractive destination for real estate investment:
- Regulatory Environment: A favorable regulatory environment can simplify the investment process and provide stability for investors.
- Infrastructure Development: Ongoing infrastructure development projects can enhance the overall appeal of the city, positively impacting property values.
- Historical Appreciation: Examining historical property appreciation trends can offer insights into the potential for future value growth in the Tallahassee real estate market.