Monthly Home Sales Rise Again In Tallahassee
The number of homes selling each month in Tallahassee is on the rise (again). This is good.
We published the Year Over Year Home Sales Update in this morning's Weekly Special Report (in case you don't subscribe to our weekly special report, you can find it here), and it showed 11 consecutive months of gains.
More importantly, it showed that 32 out of the past 36 months have posted gains in year over year home sales, a sure sign of strengthening in the Tallahassee real estate market.
But we need more than this one view of the market to understand where we are in the recovery, and the following graph is the perfect compliment to this morning's report.
Monthly Home Sales (Tallahassee)
The following graph plots the total number of homes sold and reported in the Tallahassee MLS each month.
The green dots report the number of homes sold each month, while the green line measures the one year trend (monthly average).
The first thing that catches my eye when I look at this graph is that the number of homes selling in Tallahassee has been on a steady rise since 2012 (the year the housing market bottomed).
But I also have to note that the monthly sales numbers have not yet reached reached the levels being reported at the far left of the graph (2001), so we are still reporting fewer home sales than were recorded 14 years ago.
The population of the Tallahassee real estate market (Leon County) has grown roughly 20% since 2000, yet home sales are just returning the levels that were reported in 2000. What does this mean?
Upside Potential Remains For Tallahassee Housing
While the market has grown very nicely over the past 3 years, our long-term evaluation of home sales in Tallahassee makes us believe that we still have a lot higher to go. Our current rate of nearly 300 home sales per month is far lower than our growth rate would forecast. The explosion of home sales that occurred from 2003 through 2007 required a recovery period with lower than normal sales, and we have endured the bulk of that recovery over the past 8 years.
Look to see the number of monthly home sales continue to rise, and barring anything crazy occurring with mortgage interest rates, look to see values continue to rise towards previous levels. If you are interested in knowing where you stand with equity in your own home, just drop me a note and we can schedule a valuation to help you consider your options.