Weekly Special | October 15, 2017

Tallahassee Home Sales: Will They Rise Or Fall?

The rate at which the housing market recovery is advancing has been slowing down over the past few months, and it raises a serious question about the near-term future for home sales.

Does Tallahassee have the demand (need) for homes, or has this market hit its stride?

The first thing to do when pondering the future of the housing market is to conduct a thorough examination of the past. While past performance is not necessarily and indication of future performance, one would think that a long-term trend analysis could shed some light for our expectations.

The graph above plots the average number of homes sold each day for the past 27 years.

The red line plots the 25 year trend, which at 14 home sales per day is the same as the current average.

The yellow dashed line shows how our current average would have fared in the past, and you’ll see that in 1993, 1996 and then 1999 through 2007 there were more homes selling than there are today.

Our population is nearly 50% greater than it was in the early 1990s, so I believe the long-term demand for homes should be significantly higher than what was recorded in the 1990s.

While we might not immediately return to the average posted at the top of the market, I do believe there is plenty of upside remaining in our market.

This issue went with a longer report on our blog: read the full blog post. The original one-page Weekly Special PDF is still available.