Everybody around the country that follows the real estate market (particularly those who write a real estate blog) seem to have an opinion on the state of the housing market. If everybody who prepared real estate market reports could come together and combine housing inventory data, the national real estate market could be studied in a completely different manner.
Home Inventories Dropping Is A Great Start To Cycle Change
We will not see home prices return to their normal appreciation cycle until we have reduced the inventories in each local market to a level that makes Buyers less finicky. In the graph below from the Tallahassee real estate market, we can see that the trend is towards inventory reduction. Currently in the Tallahassee housing market, there are nearly 10 months supply of homes, on average, which means that buyers have too much to choose from and it makes them tentative. This over-supply has seen discretionary buyers sit on the sidelines for the past twelve months, so the Tallahassee market needs to reduce inventory to bring them back.
How Are Inventories In Your Housing Market?
Are you paying attention to the inventory movement in your real estate market? Are homes still piling up or are the massive inventories beginning to reduce? Typically, we continue to see prices drop as the inventory flow changes, but there will be a bottoming out of price reductions as the inventory levels stabilize to a balance of supply and demand. Keep your eyes open for great buys!
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Thanks for pointing out in a visual format how the markets are shifting. This is great news!