During my most recent Tallahassee Real Estate Blog in the series of blogs on different Tallahassee Subdivisions, a reader asked if I could profile the Lakeshore Estates Neighborhood.
Lakeshore Estates is located at the intersection of Timberlane Road and Meridian Road and is an excellent example of a "Tallahassee Neighborhood." It is situated in a highly desirable location, yet the prices fall right on the median pricing line in the Tallahassee real estate market. I went to the Tallahassee Board of Realtors MLS and reviewed the most recent sales figures in order to create the following chart:
Here we see a graph that is very different from ones we have seen in the past. The gold line, which forms a "V," shows us that homes are on the market for a lower price than have sold (and failed to sell) in the past 12 months. This is not too surprising, as there are 16 months of supply of homes on the market in Lakeshore Estates subdivision. After seeing this "V," the next thing I want to see is the average home size comparison between what is available and what has left the market in Lakeshore Estates. If they are all similar, we can deduce that prices are dropping. If we see another "V," then we know that the homes on the market are just smaller than the ones that have recently sold. The next chart shows just that:
It appears that the current homes for sale in Lakeshore Estates are a bit smaller (9.7% smaller) than the ones that sold in the past twelve months. This would account for the lower price being asked by the current homes on the market. So finally, if we really want to see the relative pricing, we look at how each status category is priced per square foot. The next chart shows the normal type of progression that we see in a stable market, where supply and demand are in balance.
Unfortunately, supply and demand are not in balance. We should expect to see the sale prices remain stable or come down slightly (the Lakeshore Estates neighborhood is priced very close to the median, so we won't see the larger price drops that we will see in the higher priced homes). This tells us that the homes for sale in Lakeshore Estates are most likely slightly-overpriced, creating an opportunity for homeowners in this neighborhood to successfully market their home against the competition. Finally, let's take a look at the past 17 years of the Lakeshore Estates neighborhood in Tallahassee and what it looks like.
A home buyer could have purchased a home in Lakeshore Estates in 1991 for $95,600 and sold it in 2007 for $193,800. This would represent a 4.5% annualized appreciation rate and a significantly good investment return. Is there a neighborhood in the Tallahassee Real Estate Market that you would like reviewed? If so, add a comment with your name attached below and I'll endeavor to make a blog of it in the near future.
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Joe Manausa is the Broker and Co-Owner of Century 21 First Realty. He can be reached by clicking on the comments button below, via e-mail through his company website at http://www.manausa.com/, or by calling (850) 386-2001.
