How To Determine Value In Today's Real Estate Market
In order to determine the value of a home in today's real estate market, you need to have a keen understanding of the current relative supply of homes for sale.
Whether selling or buying, a solid understanding of price and value will enable you to better negotiate a transaction as you'll understand the options each party likely has at hand.
Today's report studies the relative supply of homes for sale in Tallahassee buy area and price range.
Featured List Of Homes For Sale In Tallahassee
Relative Supply of homes for sale in Tallahassee
The following graph displays the relative supply of homes for sale in Tallahassee. The relative supply is defined as the current supply of homes relative to the current rate of demand, expressed as months of supply.
Historically, we have seen 6.0 months of supply represent market equilibrium, the state at which neither seller nor buyer has an advantage in the market. Another way to phrase this would be "a balanced market."
In the graph above, as well as for those following, sales are shown in green while existing inventory is shown in red. Market equilibrium is shown as a yellow field. The relative supply of homes for sale is shown in blue.
When this blue line falls below the yellow field, we refer to this as a sellers' market, as there is more demand than supply. When the blue line rises above the yellow field, then we refer to this as a buyers' market, where supply exceeds demand.
Overall, Tallahassee is in a sellers' market for homes priced below $400,000, and a buyer's market above $500,000. As you'll see from the following graphs, the relative supply of homes fluctuates throughout each segment of the Tallahassee real estate market.
Relative Supply Of Homes In NE Tallahassee
The following graph displays the relative supply of homes for sale in NE Tallahassee.
Northeast Tallahassee's sellers' market extends to homes up to $450K and the buyers' market begins at $550K. While the top-end remains awash with too much inventory, it's important to note that luxury home sales are booming.
Relative Supply Of Homes In NW Tallahassee
The following graph displays the relative supply of homes for sale in NW Tallahassee.
NW Tallahassee's housing market is in a seller's market for homes priced below $250K, but immediately above that remains a strong buyers' market. If you look to the far right of the graph, you'll see far more inventory (relative supply) here than was showing in Northeast Tallahassee.
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Relative Supply Of Homes In SE Tallahassee
The following graph displays the relative supply of homes for sale in SE Tallahassee.
We see that SE Tallahassee is enjoying a sellers' market for homes priced below $350K, but it is awash with homes in the $400K to $500K price range. The high-end has cleaned up nicely in SE Tallahassee.
Relative Supply Of Homes In SW Tallahassee
The following graph displays the relative supply of homes for sale in SW Tallahassee.
SW Tallahassee remains a very troubled market. There are relatively few sales of homes priced above $150K and almost zero sales for homes priced above $450K. SW Tallahassee is the last segment of Tallahassee to participate in the real estate recovery.
How To Use The Information In This Report
Whether buying or selling, the key for you in negotiating the best deal possible is to know and understand your position in the negotiation. If you are selling a home in a low-inventory, high-demand segment of the market, you can be much tougher than if the opposite conditions are true.
Hire the best real estate professional that you can find, and then price your home (if selling) or make the appropriate offer (if buying) so that you are able to secure the best deal possible. Your top real estate agent can walk you through how to do this.
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