Short Term Trends In Housing Supply April 13, 2010
By closely monitoring the short term inventory trends in the Tallahassee housing market, we see evidence that the number of homes for sale in Tallahassee has stopped growing, as the annual seasonal growth trend has finished its course.
What this means is that over the past 30 days, more homes have left the market than have entered. Real estate inventory levels have stopped rising. The short term inventory trends help identify current seasonal changes, if any.
The graph below shows new inventory in red, departing (homes that sold, expired, canceled, etc.) in green, and the difference is shown in yellow.
When the red is higher than the green, we see short term inventory trends grow, while when all we see is green, housing levels fall. Right now, the pattern has shifted back to reduction.
While not an actual “market turn,” this is very good news for homeowners in Tallahassee.
Of course, we have to stay mindful of the shadow inventory, where we know we have mounting inventories being stored. Once banks “let loose” the foreclosure crisis at full steam, we will see rising inventories again. Stay tuned...