Weekly Special | July 22, 2019

High-End Market Reveals Mixed Message

The high-end homes market in Tallahassee is smoking hot right now, selling at a pace never before seen. The graph above shows the number of homes sold through June of each year at prices above $600K.

Today’s report was prompted by a discussion I had with a high-end homeowner recently who said “I’m not worried about marketing, $650K homes are flying off the market.” If one were to just look at the graph above, you might agree with him.

Supply & Demand Rule The Market But there are two sides to every market, supply and demand. The graph above shows that demand is high, but home sellers must understand the supply side as well.

Currently, there are nearly 11 months of supply of homes for sale priced above $600K, where 6 months of supply is considered perfect, thus homes at these prices remain in a BUYERS’ market.

When we look to the MLS, we find that there are 115 homes for sale that had an initial asking price of at least $600K. Would you be surprised to discover the average time on the market for these 115 homes is 291 days? That’s more than nine months!

Certainly these homes are not flying off the market.

Sellers must understand that buyers are not stupid. They do their homework and have a good sense of what homes are worth. If you want to sell a high-end home, market it correctly to avoid the average result.

The original one-page Weekly Special PDF is still available.