Every month we look at supply and demand in the Tallahassee real estate market in order to determine the real changes that home sellers and home buyers are facing. It is not enough to know the inventory, we have to know the relative supply of homes for sale in Tallahassee.
Relative supply is the number of homes for sale in Tallahassee expressed in terms of "months of supply" based upon the current rate of sales. Generally speaking, we want to see five to six months of supply of inventory in each price range, but current figures are still double that amount.
The chart above breaks down relative home supply by area and by price range for the Tallahassee real estate market. Currently, there are 12.3 months of supply of homes in Leon County, and as much as 82.5 months of supply in the slowest selling price range (homes for sale priced over $750K). At nearly 7 years worth of supply, you can see that we need the economy to recover to really stimulate the housing market.
Tallahassee Real Estate Supply And Demand Changes
This next chart shows how each price range changed when compared to one month ago. The numbers in red show a decline in inventory (good), while the numbers in black show growth (bad).
We can see that for the most part, there was little change from the month of June to the month of July in the supply and demand relationships of the Tallahassee housing market. Homes priced over $750K dropped nearly a whole year's supply, but we are still facing 7+ years of inventory remaining, so I'm not going to be really excited with this movement.
We are going to need to see the demand side return to normal before we have any real shot of reducing this inventory to a level that will create an environment for appreciation.
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.