Tallahassee Real Estate Supply April 4, 2010

If you want to know the beginning of the next phase of the market turn, just keep an eye on the relative home supply. You can always track housing supply levels at The Market Bulletin. The next phase you say….? Absolutely. I believe that the transition from a buyers’ market to a sellers’ market will follow this pattern:
  1. Inventory changes from growth to reduction
  2. Home Values Fall At Accelerating Rate
  3. Year over year sales increase?
  4. Inventory levels reach 6 months of supply (balanced market)
  5. Home Values Stop Falling/Start Rising

Home Sales Growth

It is going to take a return to “normal” home sales rates for our market to consume the current glut of homes for sale in Tallahassee. When we look at the supply and demand of homes in Tallahassee, it becomes readily apparent that the supply side is awash with too much inventory. In the chart below, we see that there is still more than a year’s supply of homes on the market, and we know of more “waiting in the wings.”

Home Sales Must Speed Up

Much of our data indicates that home sales are finally starting to increase, with 4 out of the past 5 months showing gains. It is going to take a return to “normal” sales rates for our market to expel the current glut of homes as well as the mounting supply of homes that exist in the Shadow Inventory.

Links To Tallahassee Real Estate

Do you want to know more about the Tallahassee real estate market? It is not as hard as you might think keeping up with the movements in the housing market, you just have to know where to look. The following are some of the best resources that you can find on real estate:

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