Important Real Estate Trends You Should Know About
We love to get questions at the Tallahassee Real Estate Blog, and when they relate to real estate trends, we know we will have an excellent graph to help us support the answer.
Today's post was inspired by a recent question from a long-time reader, and today's real estate graph shows why the prudent home seller should pay attention to what's going on around him.
The Real Estate Trends You Should Know AboutRecently, I received the following question from a reader who's been around Tallahassee for a long time. He wrote:
If inventory is rising, though, what does this mean? (in twenty words or less!)
The following graph provides ample information to answer his question, and if he understands what he is seeing below, he can skip the rest of the explanation so that my answer meets his request for brevity :).
The fact that inventory (the supply of homes for sale in Tallahassee) in and of itself does not mean anything, but it certainly does when we contrast it with demand.
If supply is rising to meet excessive demand, than we know that it might slow-down a rapid appreciation rate. But if supply is rising due to a decline in demand, then we have to be concerned with pricing pressures and the potential for depreciation.
So what does the graph say?
It shows the number of homes coming in to the market each day (blue line) has been stable for the past four months, while demand (green line; the number of homes selling each day) is on the decline.
This means that many price ranges are going to be facing depreciation again, as much of the Tallahassee real estate market is over-supplied.
If you are wondering how your home would fare under current market conditions, simply drop me a note and we can schedule a time to determine your home's value and give you pricing guidance.