Home sellers in Tallahassee have been following predictable patterns for longer than my 20 years in the real estate brokerage business. When they decide they need to sell a home in Tallahassee, they hit the market in early February with the hopes of being moved before the end of the summer.
But something is different this year. We know there is a back-log in the shadow inventory of homes, and we know there is a pile of homes that failed to sell over the past three years that will most likely re-emerge as homes for sale in Tallahassee in 2011. We have anticipated more than two year's supply of homes that need to emerge, So what is going on?
Short Term Home Inventory Graph
If we track the thirty day inventory trends in the Tallahassee housing market over time, we observe seasonal cycles. Home sales spike around June of each year, and listing inventory grows at the fastest pace near the beginning of February. Typically, the number of homes for sale in Tallahassee increases from February through April or May of each year. So what's going on now?
In the real estate graph above, the red area measures the average number of homes coming on the market over the past thirty days, while the green area measures the average number of homes leaving the market over the past thirty days. The resulting yellow area measures the thirty day average market growth. Note the spikes that occurred in each of the past three years, and how it currently does not exist in 2011. Where are the homes that we know are out there?
Sell A Home In 2011
If you want to sell a home in 2011, it is time to put it on the market for sale. Do not take this tasking lightly, as roughly 60% of the homes listed for sale in Tallahassee last year FAILED TO SELL! That's right, the owner decided to sell the home, listed with a real estate agent, had the home marketed for 6 long months, but no sale ever resulted.
If you want to avoid the failure found by the majority of "wanna be" home sellers last year, make sure you review our primer on a Progressive Property Marketing Plan so that you know what to demand from your real estate brokerage company.
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.