Some of the loudest voices in the investment markets are calling for the real beginning to the housing recovery to start next year. Others are saying the problems will be around for many years to come.
I say the answer is right in front of us and can be measured at any time, thus the talking heads really do not need to theorize.
Bullish On Real Estate (Long Term)
Anybody who has followed the Tallahassee Real Estate Blog or the Tallahassee Real Estate Newsletter over the past few years will know that we have a glut of homes for sale in Tallahassee, and they also know that home values are currently dropping.
If you follow along with the rest of this newsletter, you will see many reasons to be bearish on real estate for the next several years. But don’t lose sight of the long-term reality of cost. Other than land, nearly every cost component of real estate production is on the rise, and we expect those to continue rising to follow the recent increase in minimum wage.
So when Tallahassee needs more homes, they will be more costly to build. There will be a return to higher values one day, but we first have many more years of inventory to consume.
Tallahassee Real Estate Newsletter
We just delivered the 29th edition of the Tallahassee Real Estate Newsletter to our 1,200+ subscribers. If you want to know what is happening in the real estate market, and you want a information packed newsletter delivered to your inbox each month for free, just subscribe to the Tallahassee Real Estate Newsletter and tell us where to send it!
Next edition will be a very comprehensive report showing not only existing market conditions, but also the true requirements for a recovery to occur in the Tallahassee housing market. We hope to see you in the next edition!
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.