Why It's Hard To Find A $300,000 Home In Northeast Tallahassee (And Where To Look)
It is getting difficult to find a good value for homes priced around $300,000 in Northeast Tallahassee right now.
In fact, when we published our last market supply and demand report, there were fewer than three months supply in this tightly competitive segment of the Tallahassee real estate market.
The following is every existing home for sale listed in the Tallahassee MLS, priced from $275,000 to $325,000.
275 325 Ne Tallahassee Idx
Supply And Demand For $300K Homes In Tallahassee
The table above shows the supply and demand for homes in Northeast Tallahassee (data pulled from the Tallahassee MLS on 1/4/2017). Yet look at the listings above the table and see that there are only 34 existing homes available priced from $275,000 to $325,000, we can see that inventory is at a 15 year low for these highly prized properties.
This is normally the time of year when inventory levels bottom-out as new sellers are getting ready to enter the market, but this is the first time we've reported under 3 months of supply of these homes. Ever.
The big question for 2017 is how many new homeowners are going to enter the market to fill the demand for $300,000 homes?
Northeast Tallahassee Housing Supply And Demand
The following graph shows exactly what is going on in the NE Tallahassee housing market. While the table above is impacted by seasonal factors (times of the year when selling is slower or faster, and inventory is lower or higher), the graph below was created from annualized data and thus is a very true picture of the current supply and demand for homes by price range in Northeast Tallahassee.
The red bars measure the number of listings that have been on the market over the past year, while the green bars measure the number of homes sold over the past year. The blue line measures the average supply of homes for sale relative to the average rate of demand which results in the "relative supply of homes" measured in months of supply.
When the relative supply of homes equals 6.0, we call this "market equilibrium" and it is the amount of homes that is in balance with the current rate of demand, thus buyers and sellers are negotiating on equal footing.
When the relative supply rises above market equilibrium (blue line goes above the yellow field), we refer to this as a buyer's market. It means that there are too many homes for sale for the current rate of demand, thus buyers have an advantage in negotiations.
When the relative supply drops below market equilibrium (blue line goes below the yellow field), we refer to this as a seller's market. It means that there are too few homes for sale for the current rate of demand, thus sellers have an advantage in negotiations.
Right now in NE Tallahassee, sellers with homes below $400,000 are enjoying a seller's market, whereas those with more expensive homes remain mired in a buyer's market that does not appear to be getting much better.
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Northeast Tallahassee - Be Prepared
Whether you are thinking of selling a home or buying a home (or both) in Northeast Tallahassee, you should arm yourself with the most comprehensive information available so that you know exactly how to handle the negotiation process on your real estate transaction(s).
At Joe Manausa Real Estate, we have dedicated, full-time employees who work only one-side of the transaction (we have employees dedicated to helping sellers, and we have different employees dedicated to working with buyers). This level of focus and professional has yield a lot of happy customers in the past (you can read what our customers say about working with JMRE below).
If you would like a free, no-strings-attached consultation to review your options and the opportunities in the market today, simply drop me a note and we'll be in touch right away. Please take the time to read some of our recent customer testimonials below so that you know just how focused we are on making your happy.