Every month when we’ve assembled the updated data on Tallahassee home sales, we create the Leon County Home Inventory Report and make it available for download from the Tallahassee Real Estate Web Site.
This month brings us good news with the relative supply of homes dropping for the first time since January. As we have discussed often times in the past, we always keep an eye on housing inventories and home sales rates in order to understand the current state of supply and demand in the Tallahassee housing market.
When we study housing inventories, we want to know both the absolute home supply as well as the relative home supply.
- Absolute Home Supply – This is the total number of homes for sale in Tallahassee
- Relative Home Supply – This is the number of months of supply of homes for sale in Tallahassee, as measured using the current rate of sales (demand).
Too Many Homes For Sale In Tallahassee
We have been consuming inventory in Tallahassee and both our absolute and relative supply of homes has dropped, but we still have over 14 months of supply of homes for sale in Tallahassee. A balanced market is when we have roughly 6 months of supply, so at 14 we are still in a very strong buyers’ market.
As you can tell from the real estate chart above, there is an abundance of homes for sale in each quadrant of the Tallahassee housing market. To understand what this is really saying, imagine that you want to sell your $180,000 home in the Northwest section of Tallahassee. This chart tells us that you would be facing 19.3 months of supply as your competition. In simpler terms this means that if no other homes come on the market, there currently exists enough homes to satisfy current demand for the next 19 months (April of 2011).
Home Supply And Demand History In Tallahassee
Comments(0)