Tallahassee Real Estate BlogRecently posted or modified blog posts by tag - Pending Home Sales In Tallahasseehttps://www.manausa.com/blog/Copyright Manausa.com2017-07-01T02:38:27-07:00tag:manausa.com,2012-09-20:3215Pending home salesPending Home Sales See Sharp Decline<a href="https://www.manausa.com/uploads/imagefiles/Pending-Home-Sales.gif"><img class=" img_box_right" title="Pending Home Sales" src="https://www.manausa.com/uploads/imagefiles/Pending-Home-Sales.gif" alt="Pending Home Sales Image" width="326" height="270" /></a><a title="Pending home sales" href="https://www.manausa.com/idx/search-form/">Pending home sales</a> in Tallahassee look to be racing downwards and might create a new market bottom in the coming weeks. With the anniversary of the <a title="Home Sellers: This Is What Buyers Are Asking About Your Home" href="https://www.manausa.com/blog/what-buyers-are-asking-about-your-home/" target="_blank">Homebuyer</a> Tax Credit just 10 days away, I would say the odds are pretty good that we will see this happen.
One year ago, first time homebuyers were drawn into the market to take advantage of up to $8,000 of federal tax savings if they purchased a home (as were other homebuyers). Many of us in the real estate industry felt that the tax stimulus was not a good idea, as it did nothing but "steal" future homebuyers and bring them into the <a title="Real Estate Supply And Demand" href="https://www.manausa.com/popular-downloads/?category=1&sortby=date" target="_blank">present real estate market</a>. Well, that present market is now past, and our current market must exist on fewer buyers. The net effect on the market was minimal, and now there are fewer tax dollars at the federal level.
<a href="https://www.manausa.com/uploads/imagefiles/Pending-Home-Sales-In-Tallahassee.jpg"><img class=" img_box_center" title="Pending Home Sales In Tallahassee" src="https://www.manausa.com/uploads/imagefiles/Pending-Home-Sales-In-Tallahassee.jpg" alt="Pending Home Sales In Tallahassee Image" width="600" height="437" /></a>
Just how far it will go down is anybody's guess, but I think the level of pending home sales (homes under contract and awaiting closing) will rebound rapidly after the end of April. <a title="Best Priced Homes For Sale in Tallahassee" href="https://www.manausa.com/communities/" target="_blank">Low home prices</a> are pulling buyers into the market, but it will take some time to overcome the depleted first time homebuyer segment.
Closed Home Sales To Follow Suit
As we see our pending home sales decline, it is only natural to assume that we will see a similar effect on the closed home sales in Tallahassee. The following real estate graph shows that closed homes sales are still above the housing market bottom established in August 2009, but we have three more months before the anniversary of the end of the Homebuyer Tax Credit home closings.
<a href="https://www.manausa.com/uploads/imagefiles/Closed-Home-Sales-In-Tallahassee.jpg"><img class=" img_box_center" title="Closed Home Sales In Tallahassee" src="https://www.manausa.com/uploads/imagefiles/Closed-Home-Sales-In-Tallahassee.jpg" alt="Closed Home Sales In Tallahassee Image" width="600" height="437" /></a>
Again, time will tell how this all plays out. I recommend that you keep your eye on two key factors: Local news on employment and national news on interest rates. As we all know, mortgage interest rates are near an all-time low, which is doing nothing to stimulate the real estate market. But if we see rates rise, there will certainly be a significant and immediate effect realized in home sales.2011-04-21T06:31:00-07:002017-06-29T13:26:02-07:00Joe Manausatag:manausa.com,2012-09-20:2932Year Over Year Home Sales Improve AgainTallahassee year over year home sales improved for a wonderful 6 out of the past 7 months, according to the newest <a title="Charts, graphs, and analysis of the Tallahassee real estate market" href="https://www.manausa.com/blog/tag/housing-report/" target="_blank">real estate market data</a> that I reviewed this morning. This report gives us a great perspective on the relative movement of the housing market over time.
<a href="https://www.manausa.com/uploads/imagefiles/Year-over-Year-Home-Sales-In-Tallahassee2.jpg"><img class=" img_box_center" title="Year over Year Home Sales In Tallahassee" src="https://www.manausa.com/uploads/imagefiles/Year-over-Year-Home-Sales-In-Tallahassee2.jpg" alt="" width="700" height="634" /></a>
The real estate graph above is very simple. As each month is computed, it is compared with its corresponding month from the previous year (this April was compared to April 2009). If there were more home sales during the month this April than last, it will be reflected with a percentage growth above the zero line. If the contrary is true, it will show the percentage drop below the zero line.
Now that we have posted gains for six out of the past seven months, we should be able to feel comfortable that the recovery is under way. More home buyers are buying now than the past periods, and hopefully this will continue to grow until we are back up to historical norms.
Home Prices Drop To Stimulate Home Sales Growth
As we have discussed in the past, the Homebuyer Tax Credit helped get the recovery started, and as the summer rolls in (and then out), we will find out how much improvement has occurred beyond what the tax credit was able to initiate.
<a href="https://www.manausa.com/uploads/imagefiles/Average-Home-Prices-In-Tallahassee.jpg"><img class=" img_box_center" title="Average Home Prices In Tallahassee" src="https://www.manausa.com/uploads/imagefiles/Average-Home-Prices-In-Tallahassee.jpg" alt="" width="700" height="601" /></a>
Falling home prices have also stimulated buyers. More and more home buyers are wanting to take advantage of home prices that have dropped below replacement costs.
The trend for falling prices will continue until supply and demand levels stabilize at normal market levels of 5 to 6 months of supply. With our current 12.5 months of supply, stabilization will require significantly more buyer activity.
Resource Information For This Article
<a title="Relative home supply is the measurement of the housing inventory measured in terms of current demand" href="https://www.manausa.com/blog/tag/housing-report/" target="_self">Current Tallahassee Home Inventory Report</a>
<a title="Long term trends in the Tallahassee housing market" href="https://www.manausa.com/blog/tag/housing-report/" target="_self">Long Term Home Sales Trends In Tallahassee</a>
<a title="Pending Home Sales In Tallahassee" href="https://www.manausa.com/blog/tag/housing-report/" target="_self">Pending Home Sales Report</a>
<a title="Home Sales In Tallahassee" href="https://www.manausa.com/blog/tag/housing-report/" target="_blank">Current Home Sales Trends In Tallahassee</a>
2010-05-11T09:12:00-07:002017-07-01T02:38:27-07:00Joe Manausa