How To Fix The Housing Market --- 3 Simple Actions

Posted by Joe Manausa on Tuesday, September 9th, 2008 at 9:37am.

The newest supply and demand information have been culled from the Tallahassee Board of Realtors Multiple Listing Service (MLS) and there are no real surprises for the month of August. Inventory levels are finally creeping down, but the trend for home sales is still dropping.

Three Immediate Fixes For Tallahassee Housing Market

As I have addressed numerous times in the past, we need to see a great reduction in the inventory of our homes before we will see this market turnaround. The three actions that could accelerate the recovery in the Tallahassee real estate market include:

  1. Discretionary buyers move back into the market and start buying homes
  2. Builders reduce the amount of new homes they are building
  3. Non-serious Sellers remove their homes from the market
This graph shows the supply and demand relationships in the Tallahassee Board of Realtors Multiple Listing Service (MLS) (This information comes from MLS areas - Leon County, Gadsden County, Wakulla County, Jefferson County and Franklin County): Tallahassee Real Estate Supply and Demand Graph The one piece of good news that jumps off the Tallahassee Housing Supply and Demand Graph is the inventory trend appears to be dropping for the first time since 2004. This next graph shows the same information but greatly simplified. Graph of Tallahassee Home Inventory II So, how do you play your part in helping the Tallahassee Real Estate market recover? Simple. Do not list your home to sell unless you absolutely have to sell it. Home values must drop if inventory levels stay high, so reducing the inventory should be our focus for quite some time.

As a reminder for those who subscribe to the Tallahassee Real Estate Blog by email, some embedded pictures and videos might not be appearing in your email and you might need to click the title header to go to your browser where all will be visible. Additionally, if you would like to respond (leave a comment) to this article, you will need to "click through" to the blog site to post your feedback.

Keep checking out the Tallahassee Real Estate Blog every day for updates that include charts, graphs, and analysis of the Tallahassee real estate market.

If you like this Article then please subscribe to my blog through a full RSS feed, or you can Subscribe with Bloglines . You will be able to stay informed about the happenings in the Tallahassee Real Estate Market. You can also subscribe to this blog and have it delivered by Email.
Joe Manausa is a real estate investor and the Broker and Co-Owner of Joe Manausa Real Estate. He can be reached via e-mail through the Tallahassee Real Estate Website or catch his latest writings on the Tallahassee Florida Real Estate Blog , or by calling (850) 386-2001.
View Joe Manausa's profile on LinkedIn

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.

5 Responses to "How To Fix The Housing Market --- 3 Simple Actions"

Alex wrote: There is a housing market slump here in Illinois, and the major cause is the loss of jobs. Couldn't the problem in Tallahassee be fixed by making or advertising real jobs, not just box store greeters.

Posted on Tuesday, September 9th, 2008 at 7:53pm.

Joe Manausa wrote: Great point Bob. All the fear is on one side of the market and all the greed the other. It takes balance to right the ship.

Posted on Tuesday, September 9th, 2008 at 8:01pm.

Joe Manausa wrote: Alex, we are actually blessed in that aspect here in Tallahassee. We have high employment and a very stable job market due to government (both State and Federal). Good luck and thanks for stopping by and commenting.

Posted on Tuesday, September 9th, 2008 at 8:03pm.

Summer wrote: Can you post a blog on the recent developments with Fannie Mae and Freddie Mac?

Posted on Tuesday, September 9th, 2008 at 10:40pm.

Joe Manausa wrote: Thanks for the great idea Summer, it is posted today.

Posted on Wednesday, September 10th, 2008 at 10:15am.

Leave a Comment