Home sellers in Tallahassee are finding it a little easier to sell a home in Tallahassee as home selling success rate trends are equal to the levels that we were experiencing back in early January of this year. It appears as if the trend is going to continue higher as well.
Sales Success Trend Improving
By tracking the one-year trend of home selling success rates, we can observe the overall ease (or difficulty) of getting a home sold in Tallahassee, without interference from the seasonal affects that are found in shorter trends. The following real estate graph shows the short term trend and long-term trend of home selling success rates in Tallahassee.
The home sales success trend is measured by dividing the total number of homes sold during a period of time into the total number of homes listed during that same period of time. The result is not the actual success rate of homes selling during that time, but the general movement of this trend gives potential home sellers in Tallahassee a feel for the change in ease or difficulty in getting a home sold.
In the graph above, the blue field is the non seasonal one-year trend of the home sales success rate in Tallahassee. This number has been rising since mid-April and now registers at 38% (meaning total sales ÷ total listings = 38% for the past 12 months). The shorter trends indicate that this number will continue to rise for the near future.
Home Sellers Helping Home Sales Success
You might wonder why this trend is improving, I certainly did. In Tallahassee, we are still seeing roughly 1 in every 3 homes listed actually get sold (meaning there is currently 1 buyer for every 3 homes for sale in Tallahassee). So why the steady increase in home sales success?
This graph shows us that fewer homes are coming onto the market now than were entering the market in the past. This means that we have a "shrinking denominator" when measuring home sales success rates, thus the rate will be rising. We need this trend to continue to reduce competition and help stabilize the Tallahassee housing market.
Home Buyers Helping Home Sales Success Rate
Home buyers are also helping improve this trend. From the real estate graph below, we can see that the daily home sales trend is on the rise for the first time in over three years!
If you have a sell a home in Tallahassee, know that you have plenty of competition. There are homes on the market, as well as homes lurking in the shadows that will continue to create pricing pressure on home values for the next few years.
My best recommendation is that if you do not absolutely have to sell, join the shadow inventory. If enough people do this, inventory levels will decrease and home values will be more stable than if all the homes enter the market. But if you absolutely have to sell, let me show you how to avoid the pitfalls that 2/3rds of the home sellers are finding in the Tallahassee housing market.
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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.