It is getting difficult to find a good value for houses priced around $300,000 in Northeast Tallahassee right now.
In fact, when we published our last market supply and demand report, there were fewer than three months supply in this tightly competitive segment of the Tallahassee real estate market.
Houses For Sale In NE Tallahassee Around $300,000
Supply And Demand For $300K Homes In Tallahassee
The table above shows the supply and demand for houses in Northeast Tallahassee (data pulled from the Tallahassee MLS on 1/4/2017). Yet look at the listings above the table and see that there are only 34 existing houses available priced from $275,000 to $325,000, we can see that inventory is at a 15 year low for these highly prized properties.
This is normally the time of year when inventory levels bottom-out as new sellers are getting ready to enter the market, but this is the first time we've reported under 3 months of supply of these houses. Ever.
The big question for 2017 is how many new houseowners are going to enter the market to fill the demand for $300,000 houses?
Save Money When Buying A Home In Tallahassee
Northeast Tallahassee Housing Supply And Demand
The following graph shows exactly what is going on in the NE Tallahassee housing market. While the table above is impacted by seasonal factors (times of the year when selling is slower or faster, and inventory is lower or higher), the graph below was created from annualized data and thus is a very true picture of the current supply and demand for houses by price range in Northeast Tallahassee.
The red bars measure the number of listings that have been on the market over the past year, while the green bars measure the number of houses sold over the past year. The blue line measures the average supply of houses for sale relative to the average rate of demand which results in the "relative supply of houses" measured in months of supply.
When the relative supply of houses equals 6.0, we call this "market equilibrium" and it is the amount of houses that is in balance with the current rate of demand, thus buyers and sellers are negotiating on equal footing.
When the relative supply rises above market equilibrium (blue line goes above the yellow field), we refer to this as a buyer's market. It means that there are too many houses for sale for the current rate of demand, thus buyers have an advantage in negotiations.
When the relative supply drops below market equilibrium (blue line goes below the yellow field), we refer to this as a seller's market. It means that there are too few houses for sale for the current rate of demand, thus sellers have an advantage in negotiations.
Right now in NE Tallahassee, sellers with houses below $400,000 are enjoying a seller's market, whereas those with more expensive houses remain mired in a buyer's market that does not appear to be getting much better.
Northeast Tallahassee - Be Prepared
Whether you are thinking of selling a house or buying a house (or both) in Northeast Tallahassee, you should arm yourself with the most comprehensive information available so that you know exactly how to handle the negotiation process on your real estate transaction(s).
At Joe Manausa Real Estate, we have dedicated, full-time employees who work only one-side of the transaction (we have employees dedicated to helping sellers, and we have different employees dedicated to working with buyers). This level of focus and professional has yield a lot of happy customers in the past (you can read what our customers say about working with JMRE below).
If you would like a free, no-strings-attached consultation to review your options and the opportunities in the market today, simply drop me a note and we'll be in touch right away. Please take the time to read some of our recent customer testimonials below so that you know just how focused we are on making your happy.
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