Do Fewer Listings Make It Easier To Buy A Home Right Now?
If you have been thinking about making a move in 2015, history (and the study of its resulting statistics) indicates that now is your best time to buy a home in 2015.
When we take a look at the seasonal impact of inventory changes in the Tallahassee real estate market, we find some interesting evidence that supports buyers making a decision now versus waiting for later in the year.
Take a look at three real estate graphs that buyers should understand in order to make the best "tactical" decision when using market timing to buy a home.
Fewer Homes Under Contract
First of all, there are fewer houses on the market now than there will be all year. At first blush, this might sound like "fewer selections," but our recent study of supply and demand indicates that there is still "a more than normal" amount of homes for sale in Tallahassee.
The graph below breaks up the inventory into two groups. The blue columns measure the number of homes on the market that are already under contract with a buyer, while the red columns show the number of homes on the market that are not under contract, both of these are measured on the left vertical axis.
The green line shows the percentage of "available" homes that are currently under contract.
This graph reveals that buyers will see the highest percentage of inventory that is truly available today than we have seen since 2011. Roughly 22% are under contract, down from nearly 30% during the Summer months.
Fewer Distressed Properties
There are far fewer distressed properties in the market, and they will be declining further as the year progresses. If you want a last chance at finding a special deal among the bank owned properties, foreclosures and the few remaining short sales, you better get to it.
Currently, 27% of the active inventory is a distressed property, this is down from nearly 40% at the same time last year. As home values continue to rise, more and more homeowners can sell their way out of trouble, meaning that we'll see fewer distressed homes for sale in the future.
Real Estate Seasonality
Real estate is local, and localities bring a seasonal impact to the housing market.
The following graph has been meticulously crafted from data mined from more than 6 years of work. Take a good look at what it reveals.
This graph was produced by looking at every home that sold in Leon County, Florida and was posted in the Tallahassee MLS. We took the dates that the properties went under contract and compared them with the total number of homes for sale each month.
This analysis reveals a historic look at the decision making of homebuyers; when did they "pull the trigger" on their home purchase, and how much of this activity occurred compared to the number of homes that were listed for sale.
It shows that the least active month of the year for homebuyers has been January, thus if you go out in the market today, you will have less competition from other buyers than during any other month of the year.
If now does not suit you, then wait. But if there is nothing holding you back from buying immediately, use the tactical advantage of reduced competition to buy a home in Tallahassee today.
If you would like to start the process by meeting with a highly trained real estate buyer's agent, then simply drop me a note and we'll get the process rolling.