Compression Market Time For Real Estate In Tallahassee

What happens to home values when high end homes are oversupplied, mid-range homes are at equilibrium, but low end homes are oversupplied - because that's what we are seeing for real estate in Tallahassee.

I have not seen the term "compression market" used before, but it seems quite fitting when homes valued in the mid range are feeling opposing pressures from their environment.

Higher priced homes are dropping in value, creating more competition, but lower priced homes are in a similar situation. Homes valued in the middle are "doing fine," but anticipating values in the near future requires serious study. If you want to sell a home, you had better properly analyze your situation if you want to yield top dollar from your sale.

Real Estate In Tallahassee - It Takes Close Study Today

If you look at a graph of supply and demand for real estate in Tallahassee, you will notice that the market has improved greatly in the middle, but the lower and higher end homes have a ways yet to go. If you just assume that your specific home is appreciating, you could very well end up like the 41% of listed homeowners who failed to sell their home last year.

Real Estate In Tallahassee

In the graph above, the red bars show the number of active listings by price range in the Tallahassee MLS. The green bars measure the number of home sales for the past twelve months. The blue line (measured on the right vertical axis) shows the relative supply of homes, measured in "months of supply." When the blue line falls within the yellow field, we say that the market is balanced between supply and demand. When it is above the yellow field, it is a buyer's market, while below the field would be a seller's market.

Do Not Generalize Real Estate In Tallahassee

Real-Estate-TallahasseeThe graph shows that homes priced from $125,000 through $300,000 are in balance, as are homes priced below below $75,000. But those above $300,000 are way out of balance, with far too many sellers than buyers. As these homeowners transition from discretionary sellers to non-discretionary sellers, they will lower their asking prices and add to the inventory at price ranges below.

This is why we are not seeing appreciation for real estate in Tallahassee in the $250,000 to $300,000 price range, but we are seeing home values rise in the price ranges immediately below. And don't forget, this graph is for the overall Tallahassee real estate market; each home needs to be analyzed compared to its competition.

If you own real estate in Tallahassee and would like to know if it is the right time for you to sell, just drop me a note and we can schedule a time to review your home value and opportunities in the market.

*Joe Manausa Real Estate is a brokerage company headquartered in Tallahassee, Florida. Its unique business model provides specialists to both home sellers and home buyers, and the results speak for themselves. JMRE has significantly more 5-star reviews on google than any other local competitor. Joe Manausa Real Estate is a leader in internet marketing and utilizes search engine optimization, email marketing, social media and data analytics to get their clients’ home sold faster and for more money than any other Tallahassee brokerage firm. For more information, visit or call us at (850) 366-8917.

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#1 By Dwight at 7/11/2017 3:48 AM

Hey Joe! Utilizing the graph while talking to your customer is a great way to show your customer that you're more than a greeter in a department store. Knowing the graph helps you to match your buyer's buying power with the best communities while maximizing the appreciation value of his dollar with a great home for today and the future.

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