August 2017 Press Release

Tallahassee Economy Report ‘Stellar’ Home Prices, Realtor Sales, New Construction Permits Lead Upswing

Tallahassee, FL – The Tallahassee Economic Index (TEI), the city’s top economic growth indicator, today released numbers ending August 2017. After a 10.06 point slide in July, August pushed back 6.29 points to the upside.

“The August 2017 TEI reading revealed a strengthening economy. This was the largest upward move since January and the second largest in the past 18 months.” said TEI Founder Brett F. Ewing. “Leading the upswing was another month of real estate expansion. Realtor Sales and New Construction Permits were both higher by double digits from the prior year and single-family home prices jumped more than 14 percent from last August and 4.5 percent from July. Overall, there was broad based expansion among the categories in what we would call a stellar report.

The Index moved up 6.29 points, from 47.23 in July to 53.52 in August.

“We saw a nice rebound in the TEI for August as the typical stalwarts returned to their prior form,” said Lance Mitchell, Director of Research at the TEI. “Our top employment indicator and the largest category weighting in the index, initial claims for reemployment assistance, had its biggest drop in over a year as the jobs situation in the capital city continues to strengthen. Lumber was also a bright spot in August, and lends credence to the belief real estate should continue its torrid run as sales of the leading indicator grew by over 10% from last year. The Tallahassee economy looks to be picking up steam as it enters the final quarter of the year.”

• New Construction Permits moved up 35.71 percent from last August, from 28 to 38
• Median Home Sales Prices advanced by 4.65 percent MoM, and 14.21 from August of 2016
• Realtor Sales stayed the same as last month at 319 and escalated 12.7 percent from last August
• Drinking Places sales started to decline again sinking 1.21 percent from July, and continued to see YoY declines, 24.58 percent from last August
• Initial Claims for Reemployment Assistance dropped another 15.09 percent from July and 17.62 percent from last August
• Lumber and other Building Materials continue to elevate on a seasonally adjusted basis, 10.24 percent higher than last August. This category has now grown 11 out of the last 12 months YoY. Seeing an average YoY growth rate of 7.79 percent.