Weekly Special | February 5, 2017

Will 2017 Be The “Year Of The SELLER?”

The relative supply of homes for sale in Tallahassee is on the rise, but that does not mean we have too many homes.

February normally marks the beginning of sellers entering the market, and this year is no different.

If you look at the red line in the graph above, it measures the total number of homes for sale in Tallahassee (recorded on the right vertical axis). To give you an idea how much this market has changed over the past ten years, look at March of 2008, there were more than 3,300 homes for sale in Leon County. Currently, there are barely 1,400 homes, a decline in inventory of 58%.

The solid blue line measures something more relevant than the total number of listings. The blue line (recorded on the left vertical axis) measures the “relative” supply of homes, meaning the number of homes on the market relative to the current rate of demand. This relative supply is measured in “months of supply” and 6.0 months is deemed a balanced market where sellers and buyers are engaged on a level playing field.

Currently, overall market conditions represent a serious under-supply of homes on the market. Non-seasonal relative supply of homes have declined again to 5.2 months of supply.

So even as more sellers enter the market, rising demand is causing the relative supply of homes to decline.

This means that home sellers in most price ranges have TOTAL CONTROL over their market time. A properly priced home in most areas at price ranges below $500K will sell right away if marketed correctly.

Make no mistake about it, 2017 is the year of the seller … for the first time since 2005.

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.