Supply And Demand In Tallahassee Housing January 26, 2010
The best way to forecast future price movements in the Tallahassee housing market is by keeping a watchful eye on the current state of the supply and demand dynamics. We tend to think of a housing market as "in balance" when there exists 6.0 months of supply of homes at the current rate of sales.
In the real estate graph below, we see relative home supply (months of supply) represented by blue vertical bars, and this relative supply of homes for sale in Tallahassee dropped again during the month of December. With the relative supply of homes at 11.6 months (more than a year's supply), we can continue to expect pricing pressure on homes in Tallahassee, but relative supply is at its lowest level since August of 2008!