There is demand for homes in Tallahassee neighborhoods that are coveted. This demand is due to low inventory. This results in bidding wars with purchasers wanting to get a home as soon as possible before a substantial rise in interest rates. The Tallahassee Median Household Income is $39,407
Interest rates are rising “inch by inch” so to speak. It could be just a matter of time before lots of inches becomes lots of feet, and many of those who want to buy homes will have to use their feet to walk away from the housing market.
In 2014, nearly the entire United States was low in inventory. But, that was not true for Tallahassee. Tallahassee had a glut of homes on the market because of the bubble. Tallahassee didn’t have low inventory until early 2017.
The county of Leon has 5 months of a supply of homes. The supply has been between 3 to 5 months for the past 12 months.
Ideally supply would be at 6 or more months. However, Tallahassee’s supply has been on a steady decline.
Real estate agents are very active currently in the market. Spring and Summer are busy selling months. And unless there is a substantial sudden increase in interest rates, this active market should be steady during the following 4 or 5 months.
192 homes had been sold in Tallahassee, February of this year. 21% of the market was in the price range of $100,000 to $199,999. This was 40 homes, the largest category. There were 3 other top categories for sales price. 26 houses were sold in the $100,000 to $149,999 category. 28 houses were sold in the $200,000 to $249,999 category, and 26 houses were sold in the $300,000 to $399,999 category.
The strong market is highly dependent on the rate of interest. Low interest rates allow buyers of homes to get a greater amount of home for the dollars they have.