The Greater Tampa real estate market saw a continued strengthening in the relative supply of homes for the month of August 2011. Relative supply is measured in terms of months of supply when measured against the current rate of demand.
The following real estate supply and demand graph shows that the Tampa MLS currently has just under 6 months of supply, which is a perfectly balanced market. Most real estate professionals identify a balanced market (a market at equilibrium) when the relative supply of homes for sale falls between 5 and 6 months.
Tampa Real Estate Supply And Demand August 2011
In the real estate graph above, the one-year trend of home sales is shown in green, the current supply of homes for sale is shown in red, and the resulting relative supply is shown in purple and measured on the right vertical axis. In August, home sales rose while supply declined, thus reducing the relative supply of homes. Much of this is occurring in the lower price ranges (which our future reports will show), so hopefully this will begin to spread to the medium and higher price points as well. Stay tuned for future reports on the Tampa real estate market.