Weekly Special | May 25, 2015

Number Of Home Sales Will Continue To Grow

The state of Florida will record more homes sold in 2015 than in any other year on record. One could say that the Florida housing market is fully recovered, except that values have not advanced at the same rate as unit sales.

But the same cannot be said of the Tallahassee market. Our rate of sales in 2015 will be roughly 60% of the level recorded at the peak of the housing market.

One way to compare the current rate of home sales with levels reported in the past is to analyze the ratio between population size and the number of homes sold. One would presume that in general, the larger the population, the more homes that will sell.

The graph above compares the number of homes sold in Tallahassee each year with the total number of people living here.

Additionally, a horizontal line has been added to the graph to show the average of this ratio in the 1990s so that we can compare the following 14 years with that average.

Two areas are marked to show the housing market bubble (“A”) as well as the housing market recovery (“B”).

It appears to me that the recovery has consumed more area of the graph than did the bubble, and I think this is more evidence to support an expectation of growth in the months and years to come.

So consider this a Memorial Day present from the Tallahassee housing market.

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