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Soft 2009 Home Sales Create Buying Opportunities

This is the final "installment" on a three part blog series that was dedicated to predicting home sales in the real estate market for 2009 and beyond. Readers have provided great feedback and it has been a good discussion.

Population and Home Sales Correlation

Only time will tell if there truly is a measurable correlation between homes sales and population. Again, we must believe that in most cases, heavily populated areas will have more home sales than less populated areas. By tracking this ratio over time, we can create a graph that is similar to this:

Home Sales Prediction Graph

In this graph, we show peaks and valleys that are caused by the "Outside Influencers" discussed in the previous posts about predicting housing supply.The peaks and valleys get worked back towards the expected value as the market adjusts to those new conditions. For example, if interest rates shot up to 15%, home sales would drop immediately. But over time, home values would drop until home sales returned to the activity level that is "expected" for that population.

I appreciate all the feedback we received, both in comments on this blog as well as emails and phone calls. I would encourage all readers to "click through" to the actual blog and leave their comments and suggestions there so as to stimulate even more discussion.

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Keep checking out the Tallahassee Real Estate Blog every day for updates that include charts, graphs, and analysis of the Tallahassee real estate market.

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Joe Manausa is a real estate investor and the Broker and Co-Owner of Joe Manausa Real Estate. He can be reached via e-mail through the Tallahassee Real Estate Website or catch his latest writings on the Tallahassee Florida Real Estate Blog , or by calling (850) 386-2001.
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When moving to, in, or from Tallahassee, you will fare better if you work with a local expert. We are here to help. If you have further questions on the Tallahassee real estate market, you can leave a comment below, give us a call at (850) 366-8917, or drop us a note and we'll give you the local information needed to ensure a successful, smooth transaction.

As a local born and raised in Tallahassee with a focus on customer service, I promise you'll find great success when working with Joe Manausa Real Estate, just as have our past customers. You can read thousands of their reviews reported on Google, Facebook and Zillow right here: Real Estate Agent Reviews Tallahassee.

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