The August Year To Date Home Sales Report shows that 2010 is shaping up to most likely be the worst year for home sales in Tallahassee since I began tracking real estate market information in 1991. It appears as if the positive start to the year will be replaced with a weak finish, mostly due to the end of the Homebuyer Tax Credit which had propped-up the market for about a year.
Three Year To Date Real Estate Graphs
Each and every month of the year, I produce and examine the Year To Date report on condominiums and townhouses, single family detached homes, and the combined "residential" sales in order to get a feel for how the housing market is performing versus the same time in the past.
By breaking down each segment between new and existing home sales, the real estate graphs depict a somber view of the current state of the Tallahassee real estate market.
Existing home sales (in blue) are up slightly, new home sales (in red) are down slightly, so when combined, we can see that year to date, through August, single family detached homes have seen more sales than last year, but only slightly. With the current trend being what it is, we should see 2010 move behind 2009 by the end of the year.
Condominiums and townhouses show a different view of the market. Year to date condo and townhouse sales are very similar to last year, but both years show sales figures that are in-line with the recent past, just not so with the boom years of 2004 through 2007.
When combined, we see a Year To Date Home Sales Report that is disturbing. We had hoped 2009 would represent the bottom of the Tallahassee housing market (in terms of number of homes sold), but it appears that dubious honor might soon be held by 2010.
Supply And Demand
The Year To Date Home Sales Reports give us a great feel for what has happened, but prospective home sellers should be looking at our real estate supply and demand reports. One quick look at the current numbers shows just how competitive the current market is in Tallahassee.
Advice For Prospective Home Sellers
The smartest thing somebody (who is considering selling a home in Tallahassee) can do is to determine just how committed they are to moving. If they are "just considering a move," they should decide to wait until the market improves. But if they really have to sell, they need to aggressively market their home to the ever dwindling number of homebuyers in the market.
Taking the time to interview the right real estate company for the job of marketing and selling a home is more important now than ever before. Things have changed. A lot.
Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.