Tallahassee Real Estate Supply And Demand Approach Market Equilibrium
Our monthly real estate supply and demand report was published yesterday, and it is the first one in many years to show the Tallahassee real estate market nearing equilibrium.
This means that the supply of homes for sale in Tallahassee is almost "just right" for the current rate of demand from homebuyers.
Of course, not all areas or price ranges equally share in this wonderful news, so today's blog serves to identify the different price ranges and how they stand in this improving real estate market.
Market Equilibrium Defined
Market equilibrium is a state in which buyers and sellers are negotiating on equal footing, neither side having an advantage due to over or under supply. This means that values are established by competition (something that has been diminished since the burst of the real estate bubble).
Most real estate professionals consider market equilibrium reached when the number of homes demanded in a six month period of time are equal to the current supply of homes for sale.
Real Estate Supply And Demand In Tallahassee
The following table shows the current state of supply and demand for homes in Tallahassee.
The table shows that Northeast Tallahassee has actually dropped below 6 months of supply, while Southeast Tallahassee is just over that mark at 6.4 months. Southwest Tallahassee is performing the worst, still slugging through 9.5 months of supply of homes. If you would like a complete breakdown in each area by price range, you can download the monthly Tallahassee Housing Report.
Luxury homes in Tallahassee are still grossly over-supplied. Across the board, there are 11 months of homes over $500,000 and 21 months of supply of homes over $750,000. This upper end of the Tallahassee real estate market sees less than 2% of all homebuyers, so it's improvement will be a process that will likely take many more years.
Home sellers should use the Tallahassee Housing Report to determine the number of qualified buyers they should expect to see each month. It's important to understand the depth of buyers at your price range if you want to sell a home in 2014, and each price and each area of Tallahassee will report different numbers.
If you would like to know how to use this real estate supply and demand report in your preparation for selling a home, just drop me a note and we can schedule a time to review your specific needs and goals.