Existing home sales in Killearn Lakes (Unit 2) have dropped 72% from the peak of the market. With home prices historically running about 15% below the average home price in Tallahassee, Unit 2 of Killearn Lakes has been a very popular destination for Tallahassee homebuyers.

So why have existing home sales declined in Unit 2 of Killearn Lakes faster than the rest of the market (existing single family detached home sales are down 62% from the peak of the market)?

I suspect that the declining market has created value buyers (for those who were/are buyers) due to the glut of supply in the Tallahassee real estate market. This suggests that some areas have priced their homes more aggressively than homeowners in Killearn Lakes Unit 2, and that most likely is why home sales have slowed here faster than other areas.

Killearn Lakes (Unit 2) Home Values

Home prices continue to fall in Unit 2 of Killearn Lakes. In the real estate graph below, the red field shows that the average home price in Unit 2 of Killearn Lakes has dropped to $164K, while monthly have sales have fallen to a paltry level of just 2 homes per month.

Average Home Values In Killearn Lakes (Unit 2)

The average home price in Killearn Lakes Unit 2 has dropped 17%, but home values have actually depreciated 19%. The real estate graph below shows the average price per square foot trend of a home in Unit 2 of Killearn Lakes has dropped to $116 per square foot, and continues to trend downwards.

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Recent Home Sales In Killearn Lakes (Unit 2)

Something positive occurred in the Tallahassee real estate market during the month of October. It was long awaited, yet one month prior to my prediction made earlier this year, so I am very excited to report REAL PROOF of a housing market improvement in Tallahassee.

We finally put a halt to a run of year over year declines in home sales! Previously, the Tallahassee housing market experienced a 39 month run, from July 2006 through September 2009, of year over year home sales declines! October records show more home sales this year than October of last year (242 total home sales this year versus 241 home sales last year).

That’s right, we improved by 1 sale during this October versus last October. As paltry as that sounds, it is something the Tallahassee housing market has not experienced since June of 2006! As small as it is, we have just seen an improvement.

Year Over Year Home Sales Gain In Tallahassee

The real estate graph below shows a year-over-year comparison of Tallahassee home sales. Each month is compared with the same month from the year prior, and the percentage gain (or percentage loss) is recorded for each month. All single family detached homes, condominiums, and town houses sold and recorded in Leon County (arms length sales only) were used for this report.

Average Home Prices In Tallahassee Below $200,000

The next graph shows that residential property prices have dropped below $200,000 in the Tallahassee real estate market. This is the first time that average new construction prices in Tallahassee have dropped below $200K since 2003, a sign that a sense of normalcy is returning to our market.

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As a reminder for those who subscribe to the Tallahassee Real Estate Blog by email, some embedded pictures and videos might not be appearing in your email and you might need to click the title header to go to your browser where all will be visible. Additionally, if you would like to respond (leave a comment) to this article, you will need to “click through” to the blog site to post your feedback.

Joe Manausa is a real estate blogger, a real estate investor and the Broker and Co-Owner of Century 21 First Realty. He can be reached via e-mail through the Tallahassee Real Estate Website or catch his latest writings on the Tallahassee Florida Real Estate Blog , or by calling (850) 386-2001.

You always hear the expression that real estate is local, and there certainly is a whole lot of truth to that. Certainly, national interest rates and Obama stimulus money have an affect on a local market, but the reality is that local job growth and local population growth have a whole lot more to do with the housing market than outside influencers.

Today, I want to mention two people who are very local to Tallahassee  and are starting to make an impact, both in our local market, as well as upon the national market. I am thinking that the work they are doing could have a wonderful affect on our local job growth and population growth.

I have always admired people who could create something from scratch. “Big ideas” people are a dime a dozen, but people who can bring a thought to a tangible reality have always been able to impress me.

Local Inventor Hits National Markets

The first person that I will mention today is a local inventor, Rod Presnell, who has invented a fish-landing net like no other that I have seen. I grew up in Tallahassee, and fishing has been something that I have enjoyed since before I can remember.

My brothers and I used to walk to Lake Ella with worms and bread and fish for bluegills when we were really young. Then, when Mike hit driving age, we would throw the rods and nets in the back seat of his car and throw the canoe (aptly named Mastercharge) on the roof of the car and head for Lake Jackson.

Invariably, all of that fishing equipment would find its way together and a resulting entanglement with the fishing net would result in a 10 minute delay to our fishing trip. If only somebody could have invented a tangle-free net ….

The Bass Lasso was invented by Rod Presnell for this very reason. As a matter of fact, I wouldn’t be surprised if he won the Best New Fishing Product of the Year at the Fishing & Boat Show in Jacksonville this past weekend. Here is a video showing how his invention works.

Remember, Rod is a local Tallahassee guy, so give him some support. Visit a web site that shows different videos about the Bass Lasso as well as tells the story of why and how he invented the net. Please give some written feedback on his site so when the rest of the world finds him, they know that he has great local support!

Local Eating Has Never Been Better

Another local “inventor” created the most unique dining experience that I have ever seen. It combines speedy service (not quite “fast food”) with stir-fry “made to order,” to deliver a great meal for under $10. Bill Poole created One Fresh Stir Fry right here in Tallahassee, and now has three great locations in which you will frequently find me dining.

Why am I so impressed with Billy Poole’s creation? Because I would never in a million years thought of making a fast-food stir-fry restaurant. He not only did it, but he did it with the freshest tasting food I’ve ever had. And why mention this here? ….

Because you are going to see this local guy hit the national markets when his franchise takes hold. All it takes is the first one outside of Tallahassee, and I think this is going to be hot. 1 Fresh Stir Fry has done very well in Tallahassee because of it’s simple operating premise “Because a meal is fast doesn’t mean it has to suck. And … just because a meal is fast doesn’t mean you couldn’t get it made to order the way you like it.“

If you have not tried One Fresh yet (here’s a copy of the menu), I encourage to support this local “inventor.” If you like fresh food, without having to wait a long time to be served, I think you will be impressed with this restaurant. If you think you might like to try your hand at owning a restaurant, I cannot imagine a more exciting and excitable guy to work with than Billy Poole. You can read more about franchise opportunities at One Fresh Stir Fry on his Tallahassee web site.

Stimulate The Tallahassee Economy

All of us can have a positive effect on the Tallahassee real estate market. Choose local when possible (like eating at One Fresh Stir Fry or fishing with The Bass Lasso.) As our economy grows and our population grows, so too shall our local real estate market.

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Congress has extended and expanded the homebuyer tax credit. The modifications will become effective when President Obama signs the bill, which could occur as early as November 6, 2009.

I have received numerous emails and comments from readers who asked for me to report the changes to the First Time Homebuyers Tax Credit when they occurred, and the changes most likely will occur immediately. This post will review the changes and enhancements so you should be able to understand the new housing tax credit. I

The Obama Administration Says Buy A Home

Buy a house and you can take part in the Obama Stimulus plan. The Obama train is printing wheelbarrow loads of money for everybody who wants to buy a home now, not just first timers! So, how does this all work?

The $8,000 homebuyer tax credit for first-time buyers, due to expire November 30, 2009, will be extended through  June 30, 2010. First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, roughly a $55,000 increase above the level in existing law.

For the first time, the new legislation states that buyers who already own a home are eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

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Download  Home Buyer Tax Credit Changes Flyer

In order to provide a means to simplify and identify the new additions and changes to the program, we have prepared a one-page flyer that explains the features of both the old and the new programs, and provides the guidance and limitations for each.

This flyer will be updated should any of the programs change in the future, so please check back here from time to time to make sure you do not miss any of the updates.

The flyer will also be available for download in the right sidebar of the Tallahassee Real Estate Blog, under the section titled “First Time Home Buyers“.

Remember, we love your feedback, so please comment below and let us know what you think of this flyer and what you think of this new Home Buyer Tax Credit. Are you heading out to get your wheelbarrow?

The Tallahassee Real Estate Blog regularly reviews Tallahassee neighborhoods in order to get a feel for what home values are doing. You can click any one of the links in the right side bar (see pictured on the right) for a list of any blogs when the corresponding neighborhood in Tallahassee is mentioned.

When we last looked in on Killearn Lakes Unit 1, we noted that the home prices were holding fairly steady, though values (when looked at price per square foot) were falling. This told us that people who were buying a home in Killearn Lakes Unit 1 were buying larger homes, making the market look stronger than it appeared in standardized real estate reports.

Killearn Lakes (Unit1) Home Values

Home values continue to fall in Killearn Lakes (Unit 1). The best way to track real estate appreciation (or real estate depreciation) across a single Tallahassee subdivision is to track resale price per square foot data on a one-year trend.

The following real estate graph shows that the average number of homes selling in Killearn Lakes (Unit 1) each month has dropped below 2 per month (from a peak of nearly 5 home sales each month), and the average price per square foot of a home has dropped below $120 per square foot.

Remember, using the average price per square foot is an excellent way to track area home valuations over time, but it by no means is an accurate way to determine a home’s value. Killearn Lakes (Unit 1) features many different types of homes sitting on different types of home sites.

Some homes in Killearn Lakes (Unit 1) are on water front lots, while others are on the interior. Some have additional features such as swimming pools and multi-car garages. An individual home valuation must consider all of the differences, not just heated and cooled square feet.

Average Home Prices In Killearn Lakes (Unit 1)

Many real estate reports feature average home prices in an area. This is good to know if you are considering buying a home in an area such as Killearn Lakes (Unit 1), but it by no means an accurate depiction of true real estate depreciation (or appreciation).

The real estate graph above shows that the average home price in Killearn Lakes (Unit 1) did not start dropping until late in 2008, well more than a year after the rest of the Tallahassee real estate market. What we found in our previous analysis of Killearn Lakes Unit 1 was that buyers were selecting the larger homes when buying in this neighborhood.

This meant average home prices looked to be staying the same, while our average price per square foot report showed that homes in Killearn Lakes (Unit 1) were depreciating at a rate consistent with the rest of the Tallahassee housing market.

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Recent Home Sales In Killearn Lakes (Unit 1)