Weekly Special | August 18, 2018

Disturbing Trend Continues With Inventory

The number of homes for sale in Tallahassee continues to decline, and much of our housing market is appreciating at unsafe levels.

The table above is a snapshot of the relative supply of homes. It looks at the total number of home sales for the past year and compares it with the current inventory in order to calculate the number of months of supply of homes available.

Months of supply can be seen as the amount of inventory that exists measured in the amount of months it will satisfy the current rate of demand.

We consider a relative supply figure of 6.0 to be perfect and refer to this as market equilibrium. When supply levels drop below 6.0, the market moves to a sellers’ market, as more buyers exist than sellers. The opposite is true when the relative supply exceeds 6.0, and we refer to that as a buyers’ market.

The areas and price ranges shaded in pink above show a significant shortage of inventory and the market very much favors sellers.

Because of this, we are seeing numerous neighborhoods on the North side of town appreciate at rates that exceed 20% on an annualized basis.

At the same time, we are seeing many of the most expensive homes in Tallahassee languish on the market for years, even though the high-end market is as active as ever.

It’s important to understand where a home sits in the supply and demand dynamic to get it sold now for top dollar.

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