Market update February 17, 2025

I would like to begin this Tallahassee market update with a Case Study:

I put a very nice home on the market in April of 2024. Following are some facts and features of this home:

• The house consisted of 3994 square feet. Price to market was $830k. $213 psf.
• House had 5 bedrooms, pool, many updates, on the newly re-designed Killearn Country Club golf course, new roof and new HVAC.
• Up to this point our experience was that a home would come to market. The listing agent would qualify the listing as “coming soon” and then, if the property measured up it was not uncommon for multiple offers to be made on the home by highly motivated buyers.
• This particular property was on the market until December ’24, 244 days later.
• The selling price was $730k, $100k less than we had originally listed for.
• What had happened to the market? As we were going to market some homes were financed at 2-4% interest. By the time that we had sold our property the interest rates were almost 8%.

The home in the case study was in zip code 32309, which is where I live. There had been 36 homes sold in this zip code in 2024, January thru December. The total sold in 2025, January thru December, was 21. That was a decrease year over year of 41.7%.

Conversely the average sale price was $498,614 in 2025 compared to $465, 858 in 2024. Why was the case study home sold for $100k less than its listing price? Well , you have to put on your thinking hat for a moment. You will note that the home in the case study was offered initially at $830k. Price per square foot was $213. The size of the home was 3994 square feet. The average square feet in this zip code was in the neighbor hood of 2500. The case study home was 60% larger than the other homes sold in that time frame. That would mean that when a buyer looked for comps to the case study, they were pretty much nonexistent. This home was the largest home in the zip code. Thusly , it took longer to sell. The buyer bought it at $182.77 per square foot . If the average home was 2500 sf and the average price was $498, 614 then the average sf price would be $199.45. So the buyer got a screaming buy? He was willing to pay $730,000. Obviously he wanted the larger home within the zip code.

Lets talk about inventory of homes for sale. December 2024 had an inventory of 56 homes. In this zip code at the sales pace that was 1.8 months of inventory. Through the end of 2025 the inventory was 81 homes amounting to a 2.9 months of inventory. Less demand in place? Probably not. The answer is that the market is in a schizoid frame of mind. The real estate market is subject to many influences and conditions and should presently be put on neuroleptic drugs.

I just got through listening to a FOX news report wherein Lawrence Yun was interviewed. He is the chief economist for the National Association of Realtors. He predicted that the 2026 real estate market is going to surge forward by 14%. He ties much of that conclusion to interest rates getting under 6%. The Mortgage News Daily says that mortgage interest currently stand at 6.04% . This was mostly driven by a kinder number re : CPI. You can see this interview on my Linked-In feed.

All of the foregoing suggest that the real estate market is difficult to anticipate and analyze. Please do not self medicate.

This broker stands ready to assist you. The good news is a consultation costs you nothing. Lee Vass was retired after a thirty year career with DuPont. He retired as a mid-level executive carrying many assignments over his career. He was for a time in charge of Sales Training for 14 Southern states and Puerto Rico. He also wore the hat of Government Affairs Manager with responsibility for lobbying all over the nation.

Give me a call and we will figure it out.

Lee

Lee Vass, Broker-Owner
Lee Vass Realty
License #BK3030934
3005 Shamrock South
Tallahassee, FL 32309
850.545.3439
elvass@elvass.com
Elvass.com (website)