Where Tallahassee Home Values Go From Here
To forecast the future of home values in Tallahassee, we need to study the relationship between supply and demand to determine which segments of our market favor sellers versus those that favor buyers.
We expect those in a strong sellers’ market to see higher than normal appreciation rates, while those that are in buyers’ markets will see lower than traditional appreciation rate levels, perhaps even depreciation.
Housing Supply And Demand In Tallahassee
The following table identifies the relative supply of homes for sale in Tallahassee, measured in months of supply. We consider 6.0 months of supply to be a balanced market, whereas below six is a sellers’ market (not enough homes) and above six is a buyers’ market (too many homes).
The table above is broken down by quadrant moving across and by price range vertically. Green shading identifies areas and price ranges where it is a sellers’ market, while yellow shading identifies a buyers’ market. Non-shaded areas reveal market equilibrium (no advantage to either sellers or buyers). Where you see numbers that defy the shading, you’ll notice adjacent price ranges that can fill the void (this often happens when there is limited activity in an area).
It’s important to note that we created the table by taking the average number of listings and the average number of sales for the past twelve months in each area and price range. By doing it this way, we remove all variances that occur due to seasonality. This table very accurately reflects the relative supply of homes for sale in Tallahassee right now.