Relative Housing Supply Slightly Lower Than Last Year
The real estate graph below contains great housing market intelligence in just one look, and it has become one of my favorites for determining market strength trends every month.
When we observe the apparent chaos in this graph, we are really keying in on the vertical blue bars and the gold horizontal line “market equilibrium.” The blue bars illustrate relative supply (months of supply) of homes each month, and we are wanting them to drop down to the gold line. Above the gold line is a buyer’s market, and below the same line indicates a seller’s market.
The orange sign in the top center portion of the graph shows that for the same month last year, there were 12.6 months of supply of homes for sale in Tallahassee. The details of the differences between March of this year versus March of last year can be seen in the table below.
For example, Northeast homes priced over $750K have experienced an increase in relative supply of 30 months worth of homes, while homes in the same area priced $300K-$500K have seen the competition thinned by 3.1 months of supply.