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Tallahassee, FL: Real Estate Market & Trends 2016

Published on Wednesday - January 04, 2017

The Tallahassee real estate market made small but important improvements in 2016. Home prices are up and continue to previous years, as appreciation rates for Tallahassee real estate remain on pace with the rest of the country. Gains for home prices in the last three years, although below the national average, have extended the trend of positive growth since the recession, benefiting homeowners and investors alike.

Factors helping the Tallahassee real estate market include the local economy, home affordability and new housing construction. Upgrades in unemployment, including job growth (which has fared better than the national average) have produced favorable results for Tallahassee real estate. Home affordability, which remains among the lowest in the country, continues to improve as an influx in construction for new housing should further improve affordability moving forward.

Tallahassee, FL Real Estate Market Statistics:

Tallahassee real estate

Along with rising home prices, appreciation rates for Tallahassee real estate remain competitive. One-year appreciation reached 3.9 percent during the second quarter of last year, with three-year rates rising to 13.5 percent. In comparison, the national average achieved one-year and three-year rates of 4.9 percent and 17.8 percent respectively. Although still behind the median average, home appreciation for Tallahassee real estate continues to earn modest returns6. Moreover, Tallahassee real estate investing should see renewed interest in the second-half of the year. For those considering Tallahassee real estate investments, the following spotlights appreciation gains in previous years:

  • Homes purchased in the Tallahassee, FL housing market one year ago have appreciated, on average, by $9,780. The national average was $14,963 over the same period.
  • Homes purchased in the Tallahassee, FL housing market three years ago have appreciated, on average, by $30,980. The national average was $46,878 over the same period.
  • Homes purchased in the Tallahassee market five years ago have appreciated, on average, by $51,140. The national average was $82,353 over the same period.
  • Homes purchased in the Tallahassee, FL housing market seven years ago have appreciated, on average, by $53,952. The national average was $77,054 over the same period.
  • Homes purchased in the Tallahassee, FL housing market nine years ago have appreciated, on average, by $28,919. The national average was $31,126 over the same period.

A mixture of rising home prices and appreciation rates have produced moderate returns in the form of total home equity. For the Tallahassee real estate market, price appreciation and principle payments in the last three years have also boosted total equity growth since the recession. Total equity gains for Tallahassee real estate have steadily grown in the last nine years. Homes purchased seven years ago have earned the largest margin of profit, as homes appreciated by $53,952, compared to $77,054 by the national average. In comparison to other markets during the first-half, the Tallahassee real estate market remains on course to experience further growth in total home equity.

Another component to consider, whether a Tallahassee real estate investor or homeowner, is the foreclosure market. According to RealtyTrac, there were 1,199 properties in Tallahassee in some stage of foreclosure during the month of November. This represents a 62 percent decline from the previous month and 71 percent less than the same period last year. In addition to foreclosures, another element to consider is bank owned real estate (REO). The Tallahassee real estate market experienced 77.1 percent less REO properties during November and 85.5 percent less than the same time last year. Although lower than a year ago, foreclosures remain a viable investment opportunity for Tallahassee real estate investors.

Tallahassee, FL Real Estate Market Summary:

Tallahassee real estate investments

  • Current Median Home Price: $187,300
  • 1-Year Appreciation Rate: 3.8%
  • 3-Year Appreciation Rate: 13.5%
  • Unemployment Rate: 5.1%
  • 1-Year Job Growth Rate: 2.0%
  • Population: 186,411
  • Median Household Income: $68,214

Tallahassee, FL Real Estate Market (2016) — Q2 Updates:

Tallahassee housing market

Home prices and appreciation rates for the Tallahassee real estate market continued to rebound in the second quarter of 2016. The median home price was $187,300, compared to the national average of $239,167. While lower than the rest of the country, home prices for Tallahassee real estate are up and continue to grow relative to last year. The second quarter also produced one-year and three-year appreciation rates of 3.8 percent and 13.5 percent, whereas the national average achieved rates of 4.9 percent and 17.8 percent respectively. Furthermore, gains in the last three years have extended the trend of positive price growth after the recession.

The local economy is one factor helping to drive improvements in the Tallahassee real estate market. Unemployment, which lags the national average, has improved relative to the same period last year. The unemployment rate in Tallahassee was 5.1 percent during the second quarter, lower than the 5.5 percent a year ago. In addition, employment remains on an upward trend. Job-growth during the second quarter reached two percent, compared to the national average of 1.9 percent. That said, employment growth in Tallahassee is strong compared to other markets and the trend should continue in the second-half.

Another ingredient helping to stimulate the Tallahassee real estate market in 2016 is home affordability. Homeowners paid 10.6 percent of their income to mortgage payments, versus the national average which paid 15.8 percent. While historically strong, the Tallahassee housing market experienced further improvements over the first quarter of 2016 in home affordability. Conversely, new housing construction — or a lack thereof — could possibly influence affordability moving forward. The level of construction in Tallahassee reached eight percent during the second quarter, with single-family housing permits settling at 7.8 percent, compared to the national average of 10.6 percent. However, construction in Tallahassee is on the rise relative to last year, which suggests the local inventory has stabilized.

Looking ahead, the Tallahassee real estate market is forecasted to experience greater price growth than the U.S. in the next 12 months. According to the National Association of Realtors (NAR), Tallahassee real estate is anticipated to grow by 4.3 percent, compared to the national average of 3.6 percent. The trend of improvement is expected to continue for the Tallahassee real estate market in the second-half, which should mutually benefit homeowners and investors. 

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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