What Is A Normal Amount Of Home Sales In Tallahassee
Recently, a reader asked "what is a normal amount of home sales in Tallahassee."
He was curious about how today's abnormal conditions compares to what we are used to seeing in the housing market.
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Normal Amount Of Home Sales In Tallahassee
The following graph helps us measure the normal amount of Tallahassee home sales every month.
I'm sure there are many ways to define "normal" when looking at real estate sales in Tallahassee. We could look at the historical average number of home sales or even the median number of home sales.
But we have used a different measurement for the purpose of today's post.
We have decided that normal home sales shall be defined as the number of home sales which delivers a balanced market between homebuyers and sellers. And in order to calculate this balance, we need to know the number of homes for sale in the market at any given time.
Using Market Equilibrium As "Normal"
We define housing market equilibrium as 6.0 months of supply of homes (see today's market balance report here), thus a "normal" month of sales would produce a number of home sales equal to 1/6th of the current inventory of homes for sale.
The graph above compares the number of homes sold each month with the number of homes for sale each month. The yellow band represents the "normal" range, and the red dots show how each month's home sales compared to normal.
In a typical year, we would expect more than half of the months to fall within the yellow band, while the remaining months would be just above and just below that band.
If you look back at the left side of the graph, we can see Tallahassee was below normal for more than five years. This was a period of time when there were so many homes for sale (compared to the number of buyers in the market), that we did not observe a normal month for many years. This was an extreme buyer's market.
If you look to the right side of the graph, you can see the market spent no time in the normal range, as it has flipped right over to a seller's market. More than 1/6th of the inventory is selling in most of the months these days, and we actually saw more than 1 in 4 homes sell during the month of March.
So the answer to our reader's question is that the inventory of homes for sale is getting tighter and we might soon see a month where the percentage of homes sold is higher than what was recorded in March. The "abnormality" of the market today favors the seller in many areas and price ranges. The big question we have is "how can we build more homes at prices today's buyers can afford?" You can see all new home construction for sale here.
The Value Of Market Expertise
We work hard at Joe Manausa Real Estate to be students of the ever changing market conditions. The best way to succeed in negotiations is to understand your position (as well as the position of the opposite party) and use this understanding in guiding your demands when writing a contract.
This is not something other companies promote, and thus is an added value that we bring our customers.
If you are considering selling a home or buying a home in Tallahassee in the next year or so, take the time to sit down with us to explore the specific market in which you will enter. We can prepare you in ways you have never considered, and we promise to help you convert that preparation into extra equity in your pocket.
If you would like to know more, simply drop me a note and we'll be in touch right away.
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