Every month we publish a Tallahassee Housing Supply and Demand Report which can be downloaded from the right sidebar of the Tallahassee Real Estate Blog. This report breaks down the entire Tallahassee housing market by area and price range, in order to show the relative supply of homes for sale in the Tallahassee MLS.
Today we'll look at a comprehensive report of the current supply and demand dynamics occurring in the Tallahassee housing market. As a review for our less frequent readers, most real estate professionals agree that a balanced market has 6 months of supply of housing, with less than 6 months supply being a Sellers' market, and more than 6 referring to a Buyers' market.
Relative Supply of Homes In Tallahassee
This first real estate graph shows the number of homes for sale in Tallahassee (red), the number of home sales in Tallahassee (green), and the resulting months of supply of homes for sale (blue). The orange line represents a balanced market, and we are looking for the blue line to drop to this level.
The good news from this graph is that both real supply and relative supply are dropping, but the bad news is that we still have over 1 year supply of homes for sale in Tallahassee. But there was a surprise revealed with the newest trend report ...
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Where Is Tallahassee Moving?
One little trend that I have noticed is that the Northeast section of the Tallahassee housing market is growing as a percentage of the entire market as a whole. The Southeast is remaining fairly stable, while the Northwest and Northeast are shrinking some. So, the trend in Tallahassee is moving East.
Supply Of Housing In Tallahassee
One specific report shows updated supply and demand dynamics for the Tallahassee housing market is shown below. Each area is broken down by price range to help us determine the competition for home sellers when they decide to put a home on the market in Tallahassee.
Months Of Supply Of Homes For Sale In Tallahassee
When we look at the graph of relative home supply in Tallahassee, we see one bright spot, and that is for homes in the $150,000 to $200,000 price range, which are trending down at a fairly rapid pace. The blue line (with the "X" marks) show that supply levels have dropped from 13 months in June to under 9 months now.
MLS Housing Supply Trends Are Changing
Supplies are finally dropping, but they are still so high that pricing pressures will remain during the entire run of 2010. Even some of the price ranges that are approaching equilibrium will see more inventory arrive as frustrated homeowners continue to reduce their asking prices until buyers want their homes.
If you are a home buyer, take advantage of historically low mortgage interest rates and buy a home in Tallahassee that is priced to sell. While not all homes listed are priced attractively, there are some great choices that you can find if you are working with a housing market expert.
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.