Signs Of Inventory Stabilization
I just received the October sales data for the Tallahassee Real Estate Market. It appears that we are finally starting to see some stabilizing movements in the residential inventories. Once a month, I like to graph the supply of condominiums & townhomes (CT), the supply of single family homes (SF), and then create a total trend comparison with sales. This allows us to convert the inventory from units to months supply. The purple line clearly shows months supply coming back down. This is good news for the Tallahassee Real Estate Market!
It appears that I am not the only one that is seeing supplies coming back down. I also like to track new home permits versus sales. The Tallahassee home builders have been building fewer houses over the past year, apparently waiting to see the inventories start to come down. I think they noticed:
The green line represents the trend of permits being pulled each month for single family homes, while the red line represents the trend of sales of new construction single family homes each month. You can see the sales trend for the past several years has been stronger than permits, but we just finally made the cross-over coming back. Supply of new construction is lower now than it has been in quite a while.
We can also view this information in another format, which shows how we have been faring compared to the "average" of sales being 98% of permits (our average growth rate is just over 2%).
Anywhere that the lines are above the "average ratio line" we are consuming new construction faster than we are building it, while anywhere below, we are creating supply. This was the first month since January of 2006 that we have dropped below the line.
It appears that I am not the only one that is seeing supplies coming back down. I also like to track new home permits versus sales. The Tallahassee home builders have been building fewer houses over the past year, apparently waiting to see the inventories start to come down. I think they noticed:
The green line represents the trend of permits being pulled each month for single family homes, while the red line represents the trend of sales of new construction single family homes each month. You can see the sales trend for the past several years has been stronger than permits, but we just finally made the cross-over coming back. Supply of new construction is lower now than it has been in quite a while.
We can also view this information in another format, which shows how we have been faring compared to the "average" of sales being 98% of permits (our average growth rate is just over 2%).
Anywhere that the lines are above the "average ratio line" we are consuming new construction faster than we are building it, while anywhere below, we are creating supply. This was the first month since January of 2006 that we have dropped below the line.
Labels: Tallahassee Home Builders, Tallahassee Housing, Tallahassee Real Estate, Tallahassee Real Estate Market
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Joe Manausa, MBA, CRB, CRS | Broker / Owner | Century 21 First Realty
2365 Centerville Road | Tallahassee, Florida 32308 | 850-386-2001 | http://www.manausa.com
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