The Mother Of All Real Estate Reports v. IId
Today marks the end of a four-part series of blogs titled "The Mother Of All Real Estate Reports" that contain multiple real estate graphs of the Tallahassee housing market. For those just tuning in, you can catch the initial blogs by clicking on the following links:
- The Mother Of All Real Estate Reports v. II
- The Mother Of All Real Estate Reports v. IIb
- The Mother Of All Real Estate Reports v. IIc
The most important message home owners need to understand is that there are more home sellers than buyers in our current market. In fact, over the past 365 days, nearly 60% of the homes that were listed for sale failed to sell. The trend had been improving for quite some time, but I believe it has reversed since the end of the Homebuyer Tax Credit.
Observing daily closings in the Tallahassee housing market allows us to keep a close eye on the trend of buyer activity. This trend had been improving for nearly a year, but has definitely reversed direction since the end of the stimulus package.
Of course, an earlier warning that this was going to happen is always available in our Pending Home Sales Graph. We have added a few pointers to this graph to show how significant the end of the Homebuyer Tax Credit was to the Tallahassee housing market. The program ended on April 30th, and new contracts started falling right away.
Land Values In Tallahassee
One of the indicators that I like to monitor for future movements in land valuations is actually the sales of mobile homes. These are mobile homes, on a lot, and historically they sell for very near to the average vacant lot price.
The next real estate graph shows both land values and mobile home values, and we like to monitor the spread between the two. This graph makes me suspect that land prices will continue to drop for the foreseeable future, as mobile home values have fallen far lower and have widened the spread.
This concludes our Mother Of All Real Estate Reports v. II series of blogs. If I get enough positive feedback, I will produce this on a quarterly basis as a way of keeping our readership up to speed on the market. Please let me know what you think by commenting at the Tallahassee Real Estate Blog.