The Tallahassee real estate inventory report for October has been posted over at our Market Reports Blog, and it should come as no surprise to our regular readers that inventory levels are rising. You can download a copy of the October Housing Report here or anytime in the right sidebar of the Market Reports Blog.
When we take a look at the entire Tallahassee MLS, we can see that the whole of the Tallahassee real estate market has so much inventory now than existed before the boom of the housing market in 2004. In the real estate graph below, the blue area represents active single family detached home listings, while the red area represents the condominium and townhouse listings.
The yellow arrows and clouds in the graph above point to the difference between listings and sales in the Tallahassee MLS, with total listings nearly triple what they were in 2003. The green lines shows the trend of home sales in the Tallahassee real estate market, so you can graphically see that inventory (supply) is 3x higher, and sales (demand) is down about 33% from the pre-boom era.
Leon County Real Estate: Strongest In North Florida
The graph above shows all areas of the Tallahassee MLS, but when we isolate Leon County, we can see that things are quite a bit better (though still very much skewed to over supply). The table to the right shows current supply and demand dynamics for Leon County homes.
Overall, relative home supply in the Tallahassee real estate market (Leon County) has risen to 12.7 months of supply, meaning if no additional homes enter the market for sale, we have enough homes for sale right now to handle current demand levels for more than a year. Ouch! And Leon County is the strongest, by far, in the North Florida real estate market.
Home Seller Advice
There is too many homes already on the market, adding more only hurts all of us. If you own a home anywhere in the Tallahassee real estate market, you must recognize that values have dropped roughly 30% over the past few years, and that we expect to see depreciation continue for at least two more years.
Nevertheless, if you absolutely need to sell your home, be prepared to price it correctly. If you take advantage of a progressive marketing plan, you can still expect to sell your home. HOMES ARE SELLING. If you want to "test the market," you are kidding yourself and hurting home values as prices will continue to drop if too much competition exists for home sellers who really do have to sell their homes.
If you want to sit down and assess your current situation, just drop us a note and we will schedule a time to meet with you. If you are outside of the Tallahassee real estate market, we will hand-pick the best real estate company and agent to help you assess your situation too. We can help anywhere in the world!
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.