Supply And Demand In Tampa Real Estate August 2011

The Greater Tampa real estate market saw a continued reversal in the relative supply of homes for the month of July 2011. Relative supply is measured in terms of months of supply when measured against the current rate of demand.

The following real estate supply and demand graph shows that the Tampa MLS currently has just under 6 months of supply, which is the magic level needed to be considered a balanced market. Most real estate professionals identify a balanced market (a market at equilibrium) when the relative supply of homes for sale falls between 5 and 6 months.

Tampa Real Estate Supply And Demand August 2011

Tampa Real Estate Supply And Demand

In the real estate graph above, the one-year trend of home sales is shown in green, the current supply of homes for sale is shown in red, and the resulting relative supply is shown in purple and measured on the right vertical axis. In July, home sales rose nicely, while supply dropped, thus resulting in the decrease of the relative supply of homes. Hopefully, the more recent trend of falling supply will continue and move the market in all price ranges towards equilibrium. Stay tuned for future reports on the Tampa real estate market.

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