One bit of data that I pull every month is the Leon County Single Family Permit and Sales figures. We can look at the relationship between sales and permits to determine how new construction inventories are doing. We can also track trends. The following chart represents a 12-month trend of new construction permits and sales in the Tallahassee Real Estate Market.
The chart shows us that the trend from August, 2005 until March of this year, we have been permitting more homes than we have been selling. Since April though, we have sold 75 more homes than we have permitted. This appears to be a change in the trend after nearly two years of building more homes than the market could bear.
One must remember that this is only new construction, and only single family homes in Tallahassee. This does not show the total picture, as resales are more than 2/3rds of our total market. But I do think this chart demonstrates why we are seeing inventories starting to flatten, and hopefully we will see inventories begin to drop.
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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/