Supply Of Homes Creates Sellers Market For Much Of Tallahassee

Tallahassee Real Estate Market Report

Today’s report breaks down each of the four geographical quadrants of Tallahassee, plotting the relative supply of homes for sale by price range. While a home buyer or seller will need to see this information for their specific area or neighborhood, these graphs nevertheless are valuable in forecasting current and future home value changes.

Northeast Tallahassee Home Sales

Nearly 1/2 of this year’s homes sold in Tallahassee are located in the NE quadrant of Leon Country. With home prices rarely below $100K and ranging as high as several million dollars, Northeast Tallahassee’s market is very active right now.

The graph above shows the supply and demand for homes in Northeast Tallahassee.

The average number of listings in each price range are plotted in red, while the total number of sales over the past year are plotted in green. The relative supply (months of supply of homes) is plotted in blue, while the yellow field shows the level that produces a balanced market.

When the blue line rises above the yellow, we refer to this as a buyers’ market as there are more buyers than sellers. The opposite is true when the blue line falls below the yellow field, producing a sellers’ market. Each following section will include a graph created in the same manner.

The graph of Northeast Tallahassee shows that extreme sellers’ market conditions exist for homes priced below $450k, while extreme buyers’ market conditions exist for homes priced above $550K. The marketing strategy and pricing strategy should reflect market conditions when one decides to sell a home.

Northwest Tallahassee Home Sales

Thirty percent of all home sales in Tallahassee are located in the NW quadrant of Leon Country. With many home prices from below $100K and ranging to a handfull priced above $600K, Northwest Tallahassee’s market is very active and expanding right now.

The first thing that should stand out to the reader is that this graph is very different than the one we saw for NE Tallahassee. We can see that buyers’ market conditions exist for homes priced below $250K, while sellers’ market conditions exist for homes priced above $250K.

Expect the $250K ceiling to continue higher as time moves on. NW Tallahassee is undergoing a major change right now, as students move from rental homes to the new large apartment complexes built near the Universities. These former rental homes will be prime for renovations and flips to young families over the next five years.