- According to Realtor.com, homes in Northeast Tallahassee, particularly in 32312, increased in price by 9% from last year.
- The website’s statistics also show the amount of homes on the market dropped 14%.
- Local realtor Patty Wilson said high interest rates and an increase in prices are keeping people from buying homes.
BROADCAST TRANSCRIPT:
The temperature has been rising outside just like home prices have in part of the Capital City.
Realtor.com shows the average price of a home in the zipcode 32312 is $531,000. That adds up to be a 9% increase from this time last year.
with that rise in price, buyers and sellers are facing tough choices.
Like home prices statewide, realtor Patty Wilson says the cost of a home in northeast Tallahassee has gone up.
“650k is the new 450k,” Wilson said.
She said this year’s market is much different than in 2022.
Interest rates are to blame.
“Now, people are kind of held hostage by their house,” Wilson said. “They’re trapped because the rates were so low. It’s hard to go from 2.5 to 7.”
Something that local investor Joshua Bowling has even experienced with selling homes in the zipcode 32312.
“It’s actually something my wife and I have been going through. We have been searching for years for a property,” Bowling said. “After COVID and a spike in the inventory getting zapped out, we haven’t found anything in years.”
Not only does Bowling say the inventory is low for his family, but also for the homes he looks to buy to renovate and sell, like this one in Lakeshore Estates.
“Acquiring them has become more difficult because they just don’t exist in the same frequency,” Bowling said.
He is right.
According to realtor.com, inventory in the ZIP code 32312 dropped 14% from this time last year.
The Greater Tallahassee Chamber of Commerce said Leon County’s population is poised to increase by 18,000 people by 2030, meaning the need for housing isn’t going away.
Inventory’s not the only thing running low.
Supply chain issues are still a problem.
“we all know how high lumber became. Buying a 2 by 4 now at 3.50, 4 dollars is still half of what I remember paying when it was above 9 dollars.” Bowling said. “But that’s not two dollars or two dollars and fifty cents.”
While inventory is low, residential development is booming in the northeast.
Wilson does not think this is the answer.
“I don’t think it’s going to help. They are dressing the homes up so much that they are still so expensive,” Wilson said.
Both Wilson and Bowling said they do not expect these conditions to ease any time soon.
