Tallahassee is starting to join the rest of the US housing market which has been struggling with low inventory issues at the "sweet spot" in each market.
This sweet spot in Tallahassee can be defined as homes priced below $250,000 in our Northeast quadrant, and homes priced from $200,000 to $350,000 in the Southeast quadrant.
All other areas and price ranges remain over supplied at the present time.
If you own a home that meets the sweet spot criteria, and you are considering your options for moving, now is a great time to give me a call (or send me an email) to arrange a time for us to meet and discuss your options.
The following table shows the relative supply of homes for sale in Tallahassee. Relative supply refers to the months of supply of homes, and we consider 6.0 months of supply to be a balanced market.
A balanced market is a situation where sellers and buyers are on equal footing. When the months of supply of homes drops below 6.0 months, the market moves towards a seller's market. The opposite (a buyer's market) occurs when months of supply exceeds 6.0.
The table below shows the relative supply of homes in each quadrant, arranged by price range. An interesting example can be seen in homes priced from $150K to $200K. In the Northeast quadrant, this is very much a seller's market, as only 3.3 months of supply exist. Yet when we look at the other three quadrants, the inventory levels are high enough to be categorized as a buyer's market.
You may notice a few areas with price ranges that appear to be leaning towards a seller's market (for example, Northwest homes priced from $300,000 to $400,000), but in most cases these are areas with ample supply at price ranges immediately higher that will be undergoing price reductions that add to the apparently light inventory. In other words, a $410,000 homeowner who is getting no action due to oversupply will lower the price below $400,000 which adds to the inventory at the price range.
Currently, the West side of Tallahassee is facing a glut of supply in many price ranges, and the Southwest side is oversupplied from top to bottom.
The heavy multi-family construction that has occurred near the campuses on along Tennessee Street have drawn tenants away from single family homes and have caused many investor/owners to either lower rents or move their homes from the "for rent" market to the "for sale" market.
The impact from these construction projects will begin to be felt heavily when the next school year begins this Summer.
Thomasville Road Corridor Is Hot
If you own a home along the Thomasville Road Corridor in NE Tallahassee, you might want to give the market a try.
Home values have been moving higher here faster than anywhere else in Tallahassee.
The primary driver is the perception of the quality of schools on the Northeast side, and buyers with school-aged children often begin their search in this area for this reason.
We are seeing bidding wars on homes priced below $250,000, something fresh and exciting after so many years of the hard real estate market recovery.
Current Supply Of Homes For Sale
If you want to know how many other sellers are out there with whom you will have to compete with for ready buyers, take a look at the following table:
This table literally shows the current number of homes listed for sale in each area and each price range. For example, there are 83 homes priced above $600,000 in the Northeast, and zero (none) in the Southwest. Overall, there are 1,956 homes for sale in Tallahassee (Leon County).
How Market Knowledge Puts Money In Your Pocket
Whether you are selling a home in Tallahassee or buying one, you should know that a precise understanding of the supply and demand for housing is a critical element in you attaining the best deal possible.
If you merely test the market without pricing perfectly, you will leave money on the table as a home seller.
And if you just throw on offer out there on a home listed for sale, you are likely to either over-pay for the home or lose it to a better informed buyer. The key is to understand the competition for each home based upon the area and price range for where the home is located.
Where To Find The Best Real Estate Market Information For Tallahassee
We maintain an easy-to-use archive of our housing reports, real estate newsletters, and weekly market summaries. You can subscribe to our real estate newsletter to have it delivered to your email inbox by CLICKING HERE.
We also produce comprehensive reports for the larger Tallahassee neighborhoods that you can find by CLICKING HERE.
Of course, if you really hate reading reports, you can always reach out to us directly and we'll help you understand the current competitive environment for your home. If you want to get a feel for the current value of your home, why not try our new HOME PRICING TOOL.
Joe Manausa Real Estate has some of the best trained real estate agents that you will ever meet and they are standing by to give you 5-star service when the timing is right for you. Give us a call or drop us a note (CONTACT US HERE), we are ready to help you move!