Weekly Special | May 25, 2020

Is Tallahassee Heading To Hyper Inflation?

Low mortgage interest rates coupled with too-low inventory of homes for sale has pushed the median existing home price to an all-time high.

Presently, the median price of used homes has reached $206K, up more than 7% since last year’s average (and we’re not even 1/2 way through the calendar year).

My biggest concern about the current state of the Tallahassee housing market is that low inventory will drive us to hyper-inflation. The fed is pumping money into the economy to stave off a pendemic-related economic recession, low mortgage interest rates are making it easy to afford homes, and our local economy is weathering the storm better than most due to our strong government jobs market.

We need more homes. It really is that simple. And we need them to be built, as any time a local discretionary home seller decides to move, they are also entering the market as a buyer, thus having no impact on the supply and demand for homes. Keep an eye on our monthly supply and demand reports, they are a map to future of home prices.

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