The Tallahassee MLS shows that the relative home supply in the entire MLS dropped during the month of June. While the Tallahassee Real Estate Market Report mostly focuses on Leon County, Florida, we occasionally look at the overall and surrounding markets including our neighboring counties. By using information in the Tallahassee Board of REALTORS® Multiple [...]
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Relative Home Supply Drops In Tallahassee MLS
The Tallahassee MLS shows that the relative home supply in the entire MLS dropped during the month of June. While the Tallahassee Real Estate Market Report mostly focuses on Leon County, Florida, we occasionally look at the overall and surrounding markets including our neighboring counties. By using information in the Tallahassee Board of REALTORS® Multiple [...]
Keep Reading...Daily Closed Home Sales Shows New Trend
The daily closed home sales information graph has been updated. The Homebuyer Tax Credit has come and gone, and by the looks of it the Tallahassee real estate market benefited as planned by our leaders in Washington. The real question now is will the stimulus provided over the past year be a starting point in [...]
Keep Reading...YTD Home Sales Up Thus Far July 5, 2010
The overall number of home sales is better year to date this year than it was at the same time in 2009. This is good news! We have not been able to make that claim since 2006, as we have seen the number of sales in our market drop like a lead balloon. Last year [...]
Keep Reading...Tallahassee Condo Sales June 30, 2010
When we look at year to date sales of condominiums and townhouses in the Tallahassee real estate market, we get a feeling that things are nearly “back to normal.” After all, unit sales appear to be at pre-boom levels, so why shouldn’t we rejoice in a market segment that is posting the same number of [...]
Keep Reading...Tallahassee Land And Lot Sales June 22, 2010
Currently, demand for residential lots continues to fall, as barely more than 30 lots per month are selling in Leon County. Considering our normal level for the past twenty years is closer to 175 lots per month, this is a major drop. And prices have followed the trend set by unit sales. The average price [...]
Keep Reading...June Housing Report (with VIDEO)
Welcome to the June 2010 edition of the Tallahassee Housing Report. This month, we are experimenting with video and will base future reports upon the feedback that we receive from this and other editions. Just click the play arrow in the video below to get started. You can also make it full-screen size (recommended) by [...]
Keep Reading...Pending Home Sales Report June 14, 2010
Pending home sales measurements is our favorite way to predict future home sales so we look at the list of homes that are under contract and waiting for closing. These are what we refer to as “Pending Home Sales” and we can track them on a daily basis in the Tallahassee MLS. The real estate [...]
Keep Reading...Housing Market Overview May 31, 2010
When conducting a simple housing market overview, we like to look at the “big 4″ trend lines to determine what is happening in the Tallahassee real estate market. Of course, by the “big 4,” we mean daily new sales, daily new pendings, daily new failures, and daily new listings.
Keep Reading...Pending Home Sales Continue Rise May 15, 2010
Pending home sales measurements is our favorite way to predict future home sales so we look at the list of homes that are under contract and waiting for closing. These are what we refer to as “Pending Home Sales” and we can track them on a daily basis in the Tallahassee MLS. The real estate [...]
Keep Reading...Home Buyers More Active In Tallahassee May 11, 2010
Home Buyers have been increasing their activity in the Tallahassee real estate market, but the ending of the Homebuyer Tax Credit could slow them down. The peak of the market back in 2006 saw sales of nearly 16 homes per day, but by the time the market bottomed, we were seeing just 6 home sales [...]
Keep Reading...The Tallahassee MLS shows that the relative home supply in the entire MLS dropped during the month of June. While the Tallahassee Real Estate Market Report mostly focuses on Leon County, Florida, we occasionally look at the overall and surrounding markets including our neighboring counties.
By using information in the Tallahassee Board of REALTORS® Multiple Listing Service (MLS), we can measure the supply and demand for homes in Tallahassee and its surrounding counties. While it is one thing to know how many homes are for sale, we feel that it is more important to know the relative home supply … the number of homes for sale expressed as the amount of time it will take to consume the entire inventory. Thus, we express relative home supply in terms of “months of supply.”
In the graph below, the green line is the one-year trend of annual home sales, while the red line is the number of active listings. The purple line measures (on the right scale) the number of months of supply of homes based upon the current rate of sales (demand).
Presently, our market is getting better, but we are a very long distance from equilibrium between supply and demand.
It is generally accepted that 5 to 6 months of supply in a market brings a balance between supply and demand, with markets below this level being “Sellers Markets,” while those above being “Buyers Markets.”
We are still in a Buyers Market, but if we see demand return to normal levels, we will hit equilibrium much faster than the graph below seems to be indicating. The key is returning to normal for our market to take off.
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