If you saw the new Tallahassee Home Inventory Report for January 2010, then you saw some some mixed news in the Tallahassee real estate market! The good news is that we saw a reduction of the glut of homes for sale in our area, but the bad news is that relative supply (the supply of homes on the market relative to the current rate of sales) rose from 12.5 months of supply to 13.0 months of supply.
Fewer Homes For Sale In Tallahassee
When we look at the inventory of homes on the market in Tallahassee, we see the total inventory dropping. The following real estate graph shows a clear compaction in the number of homes for sale in Tallahassee.
Relative Supply Of Homes On The Rise
The relative supply of homes rose last month, which was the first time the direction of this trend had changed. We had seen relative supply drop from over 15 months of supply in June, down to 12.5 in November. We must see this number (represented in the vertical blue columns below) drop to roughly 6.0 months of supply in order to see stabilization in home prices in Tallahassee.
Supply And Demand For Homes In Tallahassee
The important thing for both home buyers and home sellers in Tallahassee to understand is that “the market” covers all areas and all price ranges of homes for sale in Tallahassee. But each area and each price range is operating with varying influences, so the prudent consumer will study the Tallahassee Housing Supply and Demand Report each month in order to know the strength of their individual market segment.
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{ 4 comments… read them below or add one }
looking for condo in 150k range
Hey Tim,
Did somebody from my office help you with this? Have you seen the condos in downtown Tallahassee?
Did the fact that the market appeared to be a bit better inspire more people to put their homes up for sale? In other words, can we expect to see this trend continue: more sales sparking a higher inventory rate?
Tom, this is a very wise question to have asked …. Thus far, no. Real inventories are dropping during a time of year when they normally rise on the short-term trend. The next 30 to 60 days will show us the real answer to your question. Keep an eye on the 30 day trend of Current Supply and Demand For Homes In Tallahassee and you will be the first to know!