I like seeing the steady growth in the number of home sales, as we inch higher and higher towards historical norms. And there are some other positive signs in the Tallahassee real estate market that are evidenced in the real estate graph below.
This one graph measures four very important one-year trends for home sales in the Tallahassee housing market. Remember, a one-year trend measurement removes the effects of seasonality as each point on the graph represents a 365 day rolling average.
What we see now is four trends that are all moving in a direction that is beneficial to the return of appreciating home values:
- Daily New Listings – Currently at a 3 year low, the number of new homes coming onto the market seems to have leveled off at just 15 per day. This number represents nearly a 30% drop since the market peaked at 21 homes per day.
- Daily New Sales – The trend of daily home sales is finally starting to rise again. After sinking for several years, this trend continues to bring hope.
- Daily New Pendings – Another great trend (featured on page 3), new pending home sales have been on the rise since July of last year.
- Daily New Failures – Homes that leave the market without selling are measured in order to get a feel for growth in the shadow inventory. Even though this number has dropped substantially, it is still way too high. Roughly 11 are failing each day, while 15 new ones hit the market. This is a 73% percent ratio and will take quite a while to absorb.
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