Latest Review of Supply And Demand For Tallahassee Real Estate
While the normal seasonal surge of new homes for sale in Tallahassee are entering the market, don't be surprised if you are finding fewer homes that appear to be available.
Buyer activity has taken off faster than seller activity thus far in 2015, so the impact on the market is both welcome and exciting.
Our report covers and extensive review of the supply and demand for houses in Tallahassee.
Relative Supply Of Homes Rises
Our first real estate graph shows that both the real supply of homes (red line) and the relative supply of homes (blue bars) rose this month.
This simply means that there are more homes for sale now than there were last month, and when we compare the current supply of homes to the current rate of demand, our inventory has risen. This is normal for March and this year's 6.5 months of supply, while still too many homes when compared to demand, is far better than last year's 7.1 months of supply recorded in March 2014.
More Homes, Fewer OpportunitiesWhile the first graph showed more homes on the market, this next graph shows that prospective home buyers have fewer opportunities in the market.
The red bars measure homes that are for sale and not under contract each month, while the blue bars measure the number of homes that are for sale and are already under contract with a buyer. The green line measures the ratio of homes under contract compared to the total. As you can see, buyers were busy last month.
Note how the red line actually declines from February to March. That means the number of homes for sale in Tallahassee that are not yet under contract declined since last month. Good news for home sellers, houses are moving!
Relative Supply Of Homes
In order to see how this might impact your sale or purchase, the following table shows the relative months of supply of homes for sale in Tallahassee by area and price range.
We consider the market in equilibrium (balanced) at 6.0 months of supply. So any number higher than that in the table above means that it is still in a buyer's market, while anything below that represents a seller's market. By way of example, if you have $225,000 home in NE Tallahassee, you are in a seller's market right now.
Change In Supply Of Homes
The following table shows the one-year change in the months of supply of homes for sale for each area and price range.
When the numbers are red, it means that the relative supply declined, while black figures mean supply rose. For example, the relative supply of $200,000 to $250,000 homes in NE Tallahassee fell by 1.5 months over the past year. Overall, each area showed a decline in the relative supply of homes from February 2014 to February 2015.
Current Demand For Housing
The next table shows the current demand for homes in Tallahassee.
By way of example, Northeast Tallahassee is averaging 25 homes sold each month in the $200,000 to $250,000 price range. So if you have a $275,000 home that you are thinking of selling, look at your competition to ensure that you are one of the best 25 and you will likely sell during the first 30 days of marketing your home for sale.
Current Supply Of Homes
The final table shows the current number of homes for sale in each price range and each area of the Tallahassee real estate market.
By way of example, there are 121 homes for sale that are priced between $200,000 and $250,000 in the NE quadrant of Tallahassee (and we know from the previous table that this quadrant and price range is averaging 25 homes sold per month).
So if you are buying a home priced between $200K and $250K, you should know that roughly 25 will sell and 100 will not, which means one in five of the homes that you find will sell.
Once you go through the screening process and select the best valued homes to view, don't be surprised if they all don't sell right away, as these ratios definitely favor the seller. If you like a home, jump on it before someone else does.
Of course, that is not true for every area or every price range. The key to being a smarter buyer is to understand exactly how competitive the market will be for the type of home you would like to buy. A great real estate buyer's agent will help you understand this and a whole lot more. Buy smart, save money ... work with a well-trained buyer's agent.
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