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This is a home I was blessed to sell recently. It is located Market Update
June 30, 2026
It has been a little bit since I have posted anything relative to the market. There are copious opinions as to where the real estate market is currently and where it is going. However it is the same with the overall economy. There are many experts who opine as to where we are and where we are heading. Many of them clash in different directions.
I believe that the past is a huge indicator of where we are currently. I remember very well the first home my wife and I purchased. It was 1600 square feet and the purchase price was $32,000. It was in a new housing development and was filled with folks just like us. The year was 1975. We signed the contract with the bank agreeing to pay a 13.5% interest rate. The monthly payment was $262. We were pleased with the rate because many of our neighbors were paying 18%. This was when Jimmy Carter was president and the biggest enemy we faced was runaway inflation. Gasoline was very expensive and had to be rationed.
The mortgage interest rate as of today is 6.54%. That is up from 3% a couple of years ago. Many people are sitting on their 3% mortgages refusing to place their house on the market so they can prevent an increase in monthly mortgage payments. Inflation is a pressing concern of many home owners today. Many sit right where they are in their homes waiting to see the economic indicators change in a positive direction.
In Florida sales on detached homes thru May is up slightly in numbers having sold. Single family homes are up a bit from May one year ago. It is surprising that such homes are selling at an average of $425,000, an increased rate of return of about 2.4%.
Here in Tallahassee I keep track of two zip codes. 32309 and 32312. Following is what happened in these two areas.
32309, which is the Killearn Estates area closed sales May of 2025 compared to May of 2026 showed an increase of 48.9%. The average sale price was $521,546, May 2026 compared to $435,753 May 2025. These sales were driven by a larger increase in new construction. New listings in May 2026 compared to May 2026 were down 16.7 %. Active inventory of houses was down in 2026 vs 2025 , 27.1% ( 78 vs 107 year over year thru May). May 2026 indicated 2.4 months of inventory compared to 3.9 months of inventory. A decrease of 38.5%.
32312, is the Killearn Lakes area, closed sales of 55 in May 2026 compared to 43 in 2025. An increase of 27.9 %. New construction was a part of this increase. That average sales price ’26 vs ’25 was $552, 020 vs $530, 981.New listings were 83 in ’26 compared to 66 in ’25. Active inventory May ’26 compared to May ’25, was 124 compared to 145, a decease of 14.5%.Number of months of supply of inventory was 2.8 months compared to previous year of 3.8 months. A healthy inventory is 6 months of supply of inventory.
So you can see that our two most popular zip codes were pretty healthy reflecting increased sales and an increase in price.
When you decide to buy or sale please take the professional with you. I have 24 years of experience in this business. I was a corporate executive prior, for 30 years, conducting business in Florida.
I would be delighted to visit with you and discuss your wants and needs. You don’t owe me a dime until we close the property and you get your keys or give away your keys.
With warm regards.
Lee Vass, Broker-Owner
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