In Tallahassee, the median sale price stands around $275,500 in May 2025, which is slightly down 3% year-over-year but still hovering near its peak.
However, broader Florida data show a 13.9% increase in median home prices from January 2024 to January 2025—jumping from roughly $239K to $272.5K.
And historical trends? Homes in Tallahassee have appreciated about 3.4% annually on average over the long term.
Takeaway: Even in a “cooling” market, prices remain elevated. Each month you wait, the cost of your dream home doesn’t hold steady—it’s more likely climbing.
The national average for a 30-year fixed mortgage recently ticked down to 6.85%, after briefly cresting above 7% earlier this year. Forecasts show moderate improvement, with expectations of mid‑6% rates by late 2025 .
But what does that mean in real dollars? Here's a comparison for a $300,000 loan:
At 7.0% → Principal & interest ≈
$1,996/month
At 6.5% → Principal & interest ≈
$1,896/month → $100 savings/month, or $1,200/year
Over time, that adds up—but so does delaying your purchase when home prices are higher.
Imagine two scenarios:
Buyer A purchases now at $275K with a 7.0% rate →
Monthly payment: ~$1,830.
Buyer B waits, and a year later buys at $300K with a 6.5% rate →
Monthly payment: ~$1,896.
Difference: Buyer B pays $66 more monthly, even with a lower rate, and has spent an extra $25,000 on the home’s sticker price.
In this scenario, waiting didn’t save money—it cost more.
According to Investopedia’s Home Affordability Index for May 2025:
U.S. median home price: $367,711
Median monthly housing cost: $2,412
Affordability ratio: 34.7% of income—well above the healthy 30% benchmark.
So even slight dips in rate won’t solve the affordability crunch when prices remain elevated.
Inventory isn’t flooding the market: High levels of stale listings, but rising interest rates have muted demand.
Rates might dip, but slowly: Analysts expect rates to slide modestly—not dramatically—through late 2025 into 2026 .
Opportunity cost grows daily: With cumulative price appreciation, even a small monthly uptick can mean tens of thousands more over a loan’s life.
Lock In Pre-Approval Sooner
You'll capture today’s rate and act quickly on good listings.
Use Rate Buy-Downs or Points
One-time investment now can reduce your rate by 0.125–0.25%, saving hundreds long-term.
Be Mortgage-Ready
Improve your credit score, choose the right loan term, and shop around for the best rate—your personal situation matters more than slight market shifts.
Buying now with current high—but stable—rates is often cheaper than waiting for slightly lower rates while prices continue to climb. Market trends show that price increases can easily outpace small rate drops, making waiting a gamble.
Lohman Realty
850-556-2130