Video Update

Full Report

June 2024 Real Estate Market Update   Written By: Ivan Marquez Executive Assistant, Hum Real Estate

FULL REPORT

This month’s market update focuses on how the housing market will evolve in 2025, from recession trends to inventory shifts. Here’s what you need to know to stay informed.

RECESSION

In the last 6 U.S. recessions, home prices rose in 4 of them, with a significant drop only in 2008. Unlike 2008, today's market is slowed by higher mortgage rates. Today, homeowners are in stronger financial positions, with 40% owning their homes outright and many having locked-in, low mortgage rates, making the market more stable.

Recessions also often lead to lower mortgage rates, and we’ve already seen rates drop this year. However, inflation, job market changes, and global uncertainty could keep the housing market volatile. While some headlines, like new construction reaching 2008 levels, may be true, they can lack context and seem misleading. Seeing the whole picture provides a better understanding. 

INVENTORY

Tallahassee's housing inventory has changed significantly over the past year. After rising through late 2024, inventory dropped sharply in early 2025 to just 2.2 months. With fewer homes on the market, this gives sellers an advantage. While the national inventory level is rising, Tallahassee is seeing less competition.

As of February, about 119,000 new homes were available, similar to pre-2008 levels. However, today’s situation is different. 

Unlike before, when builders kept building despite artificial demand and easy loans, today’s builders are more cautious. They’re responding to real demand, offering incentives and rate buy-downs without the risky lending practices of the past.

Across most of the country, housing inventory is rising. Experts like Altos, ATTOM, and Realtor.com project a 10–15% increase nationwide. While some areas may be flat or even declining, the majority of markets are seeing more homes for sale.

Realtor.com reports that housing inventory is up nationally, but still below pre-pandemic levels. In the South, we are seeing even faster growth, slowly closing the gap.

Inventory in real estate usually climbs through summer and drops by year-end. That seasonal trend is still holding, and last year's inventory started to recover. If it grows by about 10% this year, we could return to pre-pandemic levels. Homes staying on the market longer helps rebalance the market and moderate prices.

BOTTOM LINE

This year, the real estate market has seen a strong start locally, and expert forecasts signify a good year ahead.