Tallahassee Real Estate Market Report February 2017
We always like to remind our readers that conditions are not equally distributed across the Tallahassee real estate market.
Many areas and price ranges are hot, others are (not).
Today's report breaks down supply and demand for each area and each price range in the Tallahassee housing market.
Our report contains five graphs, each set-up in the same manner.
We look at the average number of listings over the past twelve months (red bars measured on the left vertical axis), and compare them with the total number of sales over the past twelve months (green bars also measured on the left vertical axis).
The resulting ratio provides us with the relative supply of homes, broken down by price range (blue line, measured in months of supply on the right vertical axis). The yellow band shows the level at which the blue relative supply line is "in balance."
When the blue line drops below the yellow band, we say that the market is a "seller's market," meaning conditions favor home sellers. When the blue line rises above the yellow band, we say that the market is a "buyer's market," meaning conditions favor homebuyers. The further the blue line moves from the yellow band the more extreme the conditions are in the market.
The graph above shows that over the entire area of the Tallahassee real estate market (Leon County, FL), homes are in a seller's market below $350K. But as soon as values rise above $350,000, the market goes from balanced to an extreme buyer's market. The overload of supply of homes for $400K and up is creating pricing pressure on home sellers and that is why they are not enjoying the same appreciation frenzy as we are seeing at the lower price points.
NE Tallahassee Real Estate Market
This next graph shows the relative supply of homes for sale in Northeast Tallahassee.
The graph above is not too dissimilar from the previous graph we reviewed accept conditions are a little better in all price ranges below $350,000. From there, Northeast Tallahassee actually is almost identical to the overall market for homes priced above $400,000. The middle and lower end of the price range in NE Tallahassee is as hot as we saw back in 2005, with many homes selling within hours of hitting the market.
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NW Tallahassee Real Estate Market
This next graph shows the relative supply of homes for sale in Northwest Tallahassee.
Conditions in the NW Tallahassee housing market are improving monthly, but they are far worse than overall market conditions. Due to lower liquidity at the highest end of the market, we see the relative supply move around alot, but almost always above a balanced market for homes priced above $250K. Currently though, we see a pocket has formed from $300K to $400K that appears good for sellers. The NW quadrant of Leon County has been the "most improved" over the past year, but there is still a lot of balancing required to return to healthy market conditions.
SE Tallahassee Real Estate Market
This next graph shows the relative supply of homes for sale in Southeast Tallahassee.
Southeast Tallahassee home sales are very healthy at prices below $350,000, but immediately above that point and thereafter there are far too many homes on the market. As a reminder, the graphs in this report have been developed with annualized data so as to remove the seasonal impacts that occur throughout the year (meaning these conditions do not appear bad simply because it is early February as we write this report). There remains far more sellers than buyers in SE Tallahassee once you move towards the higher end of the market and buyers should beware if they are not planning to stay for quite a while.
SW Tallahassee Real Estate Market
This next graph shows the relative supply of homes for sale in Southwest Tallahassee.
The graph of the SW Tallahassee real estate market is not broken, it is its market that has significant problems. It really is as bad as this makes it look. Every single price range in SW Tallahassee housing is worse than conditions in the overall market.
Almost no sales are occurring at prices above $150,000, so people with larger homes to sell are having a serious problem finding buyers. Anybody seeking to buy a home in SW Tallahassee should proceed with caution and ensure that you are working with an expert who can provide you with VERY ACCURATE pricing guidance.
Overall Housing Market Conditions In Tallahassee
As you can see from the different graphs above, the market is on fire for some, and nearly dead for others.
The key to buying wisely or selling for top dollar comes down to your understanding of the housing market for your specific home (or home that you wish to buy). Make sure you are working with a highly regarded professional so that you have an advantage when it comes time to negotiate your real estate transaction. We have included a few kind words from our past customers below, please take a look at what they say about their experiences with Joe Manausa Real Estate.