A New Direction For The Inventory Of Homes For Sale In Tallahassee
Having just completed the February edition of the housing report, I can tell you we are starting to see the seasonal changes that lead to an increased inventory of homes for sale in Tallahassee.
Most years, we see people start to pull their homes off the market (if they are not sold) as the holidays arrive in late November, only to reappear on the market in the middle of February and extending on through the Summer.
So as we watch for this annual rise in available homes, let's take a detailed look at what the Tallahassee real estate market has to offer in 2014.
Inventory Of Homes For Sale In Tallahassee
The rush of short sales and foreclosures that emerged in 2008 and continue through today has wreaked havoc on the status of the inventory available to homebuyers.
In the past, most homes that went "under contract" were either closed within 45 days, or were put back on the market after the buyer and seller failed to reach the closing table for one reason or another.
But today, things are quite different. Many short sale properties might be under contract for a year or more, thus representing a segment of the houses that appear to be "for sale," yet are likely to be unavailable for many people shopping for a home.
So why does that matter? Because we normally consider the total number of homes available when determining supply and demand, yet much of today's supply really isn't available any longer.
The graph below breaks the inventory of homes for sale in Tallahassee into two segments. The blue bars show the number of homes listed that were "under contract" each month, while the red bars show the number of homes that were not. Both are measured on the left vertical axis.
The yellow line, measured on the right vertical axis, shows the percentage of available homes that were under contract each month.
The graph is showing us that there are more homes available in February than there were in January in the Tallahassee MLS, but the percentage of those that are already "taken" has risen too, meaning buyers will feel a rise in inventory, yet not find a corresponding rise in the number of homes worth pursuing.
Hopefully, 2014 will bring a continued decline in the trend of homes under contract as a percentage of the current housing supply. This will mean that a higher percentage of homes are clearing through, whether as sales or as failed contracts.
If you would like to know more about understanding the inventory of homes for sale in Tallahassee, just drop me a note and we can schedule a time to help you apply this knowledge to savings when you sell or buy a home this year.