Relative Supply Of Homes Hits 2 Year High
In case you didn’t see the update on twitter the July edition of the Tallahassee Real Estate Supply And Demand Report has been published and is available for download. It shows the relative supply of homes by area and price range in Tallahassee, and the trend is very disappointing.
As a reminder, the relative supply of homes is the measurement of the current inventory, shown in terms of months of supply, based upon the current rate of demand. The Tallahassee MLS reports that our supply is now at 13.5 months, which is the highest we have seen our relative supply soar since October 2009.
Falling demand is outpacing the falling real supply of homes, and that is why relative supply is on the rise. With over 13 months of homes for sale in Tallahassee, we are a long way off from the 5 to 6 months of supply that would represent a balanced market and “normal” conditions would return.
No area or price range in Tallahassee (Leon County) is showing any real strength, with some price ranges now sporting as much as 13 years worth of supply! This is very handy information if you want to sell a home in Tallahassee, as it shows you just how much competition you will face when you enter the market.
The table above summarizes the information in the inventory report. Each price range is listed in the left hand margin, while the column headings show each quadrant in the Tallahassee housing market. For example, there are 13.2 months of supply of homes priced between $250,000 and $300,000, but the Northeast and Southeast are far more likely to attract a buyer in this price range than are the Northwest and Southwest quadrants.
I strongly believe that understanding the market and conditions specific to your property and your part of town can help save you money when you go to sell your home. Knowing what buyers are seeing is the first step in understanding the value of your home, so do not skip this very critical early step in the home selling process.