An Updated Housing Report For Tallahassee Florida (Before The Annual Real Estate Forecast)
As time nears for me to publish the 2014 real estate forecast, I have been studying all of the charts and graphs that we maintain on the Tallahassee housing market.
For our newer readers, this will be my sixth annual real estate forecast (and I encourage you to go back to past forecasts to see how close they were). I have been fairly accurate over the past few years, but there are some concerns I have for my outlook for 2014.
Before you continue ... Do you have any thoughts on where you see home sales going next year?
Housing Report Tallahassee Florida
Before we can jump forward to estimate future movements in the Tallahassee real estate market, we should first get a fix on where we are today. While we write about housing market conditions on a regular basis, there are many views we must consider before deriving a forecast for the coming year. Today, we'll focus on three key trends that will shed some light on current activity.
The real estate graph plots three key one-year trends that we like to monitor, and it contains a ratio for two of them that might provide insight into future developments about the number of homes for sale in Tallahassee.
- The blue line shows the average number of homes entering the market each day (new listings).
- The green line shows the average number of homes selling each day.
- The red line shows the average number of homes failing to sell each day.
The yellow line shows that the ratio between the number of homes entering the market and the number that have sold is at a five-year high, which is good news for people who need to sell a home.
A Positive Housing Report For Home Sellers
The number of "failed to sell homes" is on the rise, but that number is not rising as fast as either new listings or new sales. I think we must always monitor the sellers who have a home that did not sell, as they represent future competition for the price ranges directly below where they attempted to sell.
The number of properties for sale in Tallahassee is rising (which has been anticipated for years due to pent-up supply), but happily the rise in demand is exceeding the rise in supply and we continue to chip away at the glut in our housing market.
Our report suggests that it is easier to sell a house today than it has been since 2007, and I believe as word spreads we will see more homeowners who have been waiting in the wings come forward and enter the market. So long as demand keeps up with the new supply, this will be a healthy step in the housing market recovery process.
If this housing report has you thinking about selling a home and you would like to know what your home will likely fetch, just drop me a note and we can schedule a time to examine your home and establish its fair market value.