July Brings A Change In Real Estate Supply And Demand
The month of July has brought about an interesting change in the real estate supply and demand situation in Tallahassee.
For the first time in six years, the month of July has brought about a rise in the amount of homes for sale in Tallahassee.
Is this the beginning of the shadow inventory coming forward into the market due to signs of strengthening that we have witnessed lately.
Tallahassee Real Estate Supply And Demand Report
When we look at the real estate graph below, we see that the number of houses listed for sale in Tallahassee rose in July for the first time in six years (red line and yellow arrows). Fortunately, the number of home sales also rose (green line), so the resulting relative supply of homes for sale declined to 8.4 months of supply.
This relative supply of homes for sale is still far too high and the rise of the real supply of homes creates a concern that we could see a flood of inventory coming into the market which would keep pricing pressure on home sellers.
The Status Of Real Estate Supply And Demand
The next graph shows the supply of homes for sale in the Tallahassee MLS. The red bars represent the number of homes for sale that are not under contract. The blue shaded area measures the number of homes that are contingent in the MLS, while the green area measures pending home sales. Combining the blue area and the green area in the graph, we see that one in every three homes for sale in Tallahassee is under contract.
This is one of the reasons that using most online property search tools is so frustrating for homebuyers. Many of the homes that they want to go see are under contract and might even have a backup contract on them.
For this reason, you really need to have a real estate buyers agent that you can bounce questions off of while you do your online property search. All of the national property search tools as well as all the local ones that feature all of the homes for sale in the market, get their information from the Tallahassee MLS.
If you would like to know how real estate supply and demand are going to affect your home search, just drop me a note and we can schedule a time to review your needs and wants in a new home.