Every month I like to take a reading of the inventory movement from the Tallahassee Board of Realtors Multiple Listing Service (MLS). This data source represents roughly 65% of what is happening in the Tallahassee real estate market and surrounding areas. The Tallahassee MLS records information about:
- Leon County, Florida real estate
- Wakulla County, Florida real estate
- Gadsden County, Florida real estate
- Jefferson County, Florida real estate
- Franklin County, Florida real estate
- Other Counties that our local realtors sell in are recorded as “Other.”
So what does the newest data tell us about inventory movement in the Tallahassee real estate market? Unfortunately, it tells us that we are still seeking the bottom of the market. Inventory levels are rising and sales trends are still falling. Throughout the five-county area, we have finally seen the inventory of housing reach 16 months of supply!
The key to finding the bottom and then turning this market around will be seen in the turn of the sales trend. We have seen prices drop quite a bit, but certain areas of the Tallahassee real estate market have not seen a whole lot of change. Beach properties are having the biggest impact on this graph and I suspect there is more blood that needs to be shed at the beach before we see the investors swoop in and start to scoop them up.
The sign to look for at the beach this summer is rental rates. If we start seeing all of the “flip” properties start to hit the rental market, then rental rates will have to start dropping dramatically. If the flip properties are still being held for sale, then the rental market will be less affected and rental rates will be strong. Once they are converted to rentals, we know the final step before the turn will have been reached.
The inland areas of the Tallahassee real estate market are struggling as well, just not nearly as much as the beach area markets. I will be publishing the Leon County Florida Real Estate Inventory Report within the next ten days and I suspect our inventory levels will be around the 11-month level. While 11 months of supply is no reason to rejoice, it sure beats a day at the beach!
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Joe Manausa is a real estate investor and the Broker and Co-Owner of Century 21 First Realty. 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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