The supply of “used homes” here in Florida (Miami/Ft. Lauderdale, Tampa, Orlando, and Jacksonville metro areas) fell an average of 3.6 percent in December, with a national decrease of 6 percent. This is a good thing – as we all know that less supply often means higher prices.
The same cannot necessarily be said for smaller regions that remain unaccounted for by large scale surveys like the one provided by ZipRealty. According to their report, only Philadelphia showed an increase in “used home” inventory.
However, you may very well have noticed an uptick in the number of homes for sale in your neighborhood over November totals. This is an important distinction because real estate is not a nationwide market, nor is it even a citywide market. Real estate is highly local and responsive on a neighborhood-level.
See, statistics are like Plastic Man… Powerful, but “Flexible.” ZipRealty’s survey is guilty of being the same. For example, it does not track the demand side of the equation – in this case: Buyer Activity.
November and December are typically slower for buyer foot traffic than, say, March and April. As such, December’s drop in supply, therefore, may reflect the expectation of reduced buyer interest. Folks may just be waiting to list their homes until the Spring.
In addition, the ZipRealty survey does not take into account newly-constructed home inventory or foreclosed property totals. In some cities, that can amount to 25 percent or more of the overall market supply.
I’ll have some housing statistics for the Winter Haven area and cities surrounding the Orlando area here on this site shortly. In the mean time, what’s going on in terms of housing supply in your area? Do your local numbers reflect ZipRealty’s picture of housing slump recovery?
(Image courtesy: The Wall Street Journal Online)
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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Here in Tampa, our actives (supply) is decreasing steadily, even into the New Year, while pendings (under contract) are creeping upwards. The one caveat being that the majority of the focus is on pre and post-foreclosure properties.
Lenny Gurvich’s last blog post..Tampa Foreclosure Interest Gaining Momentum
Hey Lenny, thanks for stopping by! Good to hear that inventory in Tampa, FL is decreasing. Keep us posted!