We have seen some tough reports lately on the falling prices in the Tallahassee real estate market, so I thought today I would point out some of the good news that we are seeing. The good news relates to the falling inventory of homes for sale in Tallahassee.
As we have discussed often in the past, supply and demand will rule every and any market over the long haul. Currently, there is a glut of homes for sale in Tallahassee, but the gross number of homes for sale has been falling for nearly a year. You can monitor the movement in the Tallahassee home supply at The Market Bulletin, where home inventory records are updated twice per week.
Tallahassee MLS Reports Falling Inventory Of Homes In Tallahassee
This first real estate graph shows (gold line) that there are nearly 1,100 fewer homes for sale in Tallahassee than there were just 365 days ago. Unfortunately, much of the departures are due to homes that failed to sell (red line) versus homes that actually sold (green line). The blue line shows homes that "came back" on the market.
Trends In Home Inventories In The Tallahassee Real Estate Market
We consider it critical to track the trends in inventory level changes in the Tallahassee housing market. By doing so, we will have the earliest notification that valuations are going to change direction or accelerate in the current direction.
This next graph is "busy," but it holds some great information all corralled into one picture. Each line represents an inventory change trend. Two lines are highlighted, the 1 month trend and the 1 year trend. This "short term trend" and "long term trend" allows us to really see the changes in housing inventory in Tallahassee. Currently, our long-term trend shows that our home inventory levels in Tallahassee are dropping by 3 homes per day!
Home Sales Success Trends On The Rise In Tallahassee
Another important measurement that we monitor is the success rate that shows what homes are selling in Tallahassee. This is merely the measurement of homes sold versus homes listed over a period of time. Looking at the graph below, we see the short-term trend (purple line) is rising rapidly (seasonality), while the long-term trend (blue line) appears to be finally rising.
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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.