Relative Housing Inventory Drops In Tallahassee

Posted by Joe Manausa on Wednesday, August 5th, 2009 at 10:33am.

Every month we take a look at housing inventory in Tallahassee in order to see whether or not the supply is growing or if the supply is shrinking. We have come to learn that there are two ways to look at home supplies in Tallahassee:

  1. Absolute Home Supply - This is the total number of homes for sale in Tallahassee
  2. Relative Home Supply - This is the number of months of supply of homes for sale in Tallahassee, as measured using the current rate of sales (demand).

I have just completed the August Home Supply Report which can be downloaded by clicking the picture on the right. This report is updated each month and the current version can always be downloaded from the Tallahassee Real Estate Market Reports Web Page.

This month we find some good news in both relative and absolute supplies, with both levels dropping for the first time in seven months! Relative supply dropped to 14.6 months of supply, the lowest level since March of this year. Absolute supply dropped to 2,536 homes, the lowest level recorded on our graph below.

Tallahassee Home Supply Dropping Again

Tallahassee Home Supply Graph

In the real estate graph above, absolute supply (current active listings in the Tallahassee MLS) are measured in red, homes sold each month are measured in green, while the relative supply (months of supply of homes for sale in Tallahassee) is measured in blue.

Homes For Sale In Tallahassee

We can use a real estate graph to show the supply of homes for sale in Tallahassee by price range. While the graph is very busy, it can be useful for people who want to sell a Tallahassee home, as it shows how much competition is in each price range, as well as the current movement in that price range.

Homes For Sale In Tallahassee

Relative Supply Of Homes For Sale In Tallahassee

We can also view another very busy real estate graph that shows relative supply of homes, by price range, that are currently on the market in Tallahassee. While the overall picture got a lot better last month, you can see that several price ranges continued to get worse. For example, if you own a home for sale for more than $500,000, you can see that this price range flew right off the chart and currently resides at 25.9 months of supply!

Months of Supply Of Homes For Sale In Tallahassee Graph

Lots Of Competition In Tallahassee Housing Market

The reason that we continually publish Tallahassee housing market reports in our blog and on our web site is to create awareness of just how tough the market is running right now. If you look on the graph above, you can see that the lowest measurement of "months of supply" starts at 8.0, yet we all know that a balance market is around 6.0.

So, home sellers in every single price range are facing a buyers' market. The key to succeeding in this market is to stay vigilant to market moves and to heed the advice of your real estate professional. One great way to stay on the leading edge of market movements is to subscribe to our Tallahassee Real Estate Newsletter, which you can do by clicking the graphical link below.

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Joe Manausa is a real estate blogger, 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.

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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.

2 Responses to "Relative Housing Inventory Drops In Tallahassee"

TLH Landlord wrote: If I am reading the chart correctly, it looks like the number of sales in July 2009 was roughly equivalent to the number of sales in July 2008. Please provide the monthly sales figures in table form (rather than graph form) as far back as you can, so I can see more detail on how the monthly sales are tracking on a y-o-y basis. Thanks.

Posted on Sunday, August 9th, 2009 at 5:10am.

Joe Manausa wrote: TLH L: If you click on the "click here for a free download" link, you will get the current data that made up this chart.

Posted on Sunday, August 9th, 2009 at 10:54am.

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