Home Sales Forecasting
The question that I receive more than any other is “when do you see the market recovering to normal?”
The only honest answer is “I don’t know,” but I do know what keys that I am watching so that I’ll be able to know it as fast as anybody else.
First of all, the supply and demand reports that are downloadable from the sidebar of the Tallahassee Real Estate Blog allow me to see what areas and price ranges of the market are first approaching an equilibrium level. Once achieved, I know these segments of the market will be the first to turn to a Sellers’ market and when home price appreciation will begin.
Current Rate Of Home Sales Is Low
The graph above demonstrates how far Tallahassee moved above the level of home sales attained in the 1990s. This suggests that we will need to spend quite some time below that level to return to normal (unless our population starts growing very rapidly).
This graph seems to suggest a return to normal in 2012, but so many other factors are important. By studying the supply and demand reports, we will see the changes as they occur and will be able to understand current situations for each and every price range.