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Full Report

June 2024 Real Estate Market Update  Written By: Ivan Marquez Executive Assistant, Hum Real Estate

This month’s report highlights a slowing market, which is typical for this time of the year in real estate. 

Equity

Despite record-high consumer debt, the housing market remains resilient, supported by $35 trillion in nationwide home equity. This equity strengthens the market, influences homeownership trends, and mitigates foreclosure risks.

Tallahassee’s median listing prices are above that of the national average. This suggests that in 2025, the local market may see price stabilization influenced by broader economic factors and national trends.

Mortgage Debt

Less than 1% of mortgages are 90+ days delinquent as of Q3 2024. This is a healthy level according to mortgage servicers. Strong homeowner equity helps those facing foreclosure sell their homes and manage challenges. Foreclosures remain low, down 11% year-over-year, showing market resilience.

FSBO (For Sale By Owner)

The share of FSBO sales has reached a historic low, with only 6% of recent sales categorized as FSBO, compared to 90% of sellers who used a real estate agent—an increase from 89% last year.

Key Insights:

1. The percentage of FSBO sales has been steadily declining over the decades, as shown by data from the National Association of Realtors (NAR).

2. Of the 6% FSBO sales, 38% of FSBO sellers sold to a relative, friend, or neighbor, making the transaction straightforward and less reliant on agent services.

This trend underscores the value real estate agents bring.

While FSBO sales occur for various reasons, they often come with significant challenges for sellers. According to NAR, key obstacles FSBO sellers face include:

1. Pricing the Home Accurately – Correct pricing is critical and increasingly challenging.

2. Selling Within a Desired Timeline – FSBO sales may take longer than anticipated.

3. Understanding Paperwork and Legal Requirements – Navigating the complexity of real estate documentation is a common issue.

4. Preparing the Home for Sale – Staging and repairs require expertise and resources.

5. Time Management – FSBO sellers may struggle to allocate enough time for all aspects of the process.

Tallahassee Real Estate