The price of any item is determined by the supply of that item,
as well as the market demand. The National Association of REALTORS (NAR) surveys “over
50,000 real estate practitioners about their expectations for home sales,
prices and market conditions” for
their monthly REALTORS Confidence Index.
Their latest edition sheds some light on the relationship
between Seller Traffic (supply) and Buyer Traffic (demand).
Buyer Demand
The
map below was created after asking the question: “How
would your rate buyer traffic in your area?”
The darker the blue, the stronger the demand for homes in that
area. Only four states came in with a weak or moderate demand level.
Seller Supply
The Index also asked: “How
would your rate seller traffic in your area?”
As you can see from the map below, the majority of the country
has weak Seller Traffic, meaning there are far fewer homes on the market than
what is needed to satisfy the buyers who are out looking for their dream homes.
Bottom
Line
Looking at the maps above, it is not hard to see why prices are
appreciating in many areas of the country. Until the supply of homes for sale
starts to meet the buyer demand, prices will continue to increase. If you are
debating listing your home for sale, let’s get together and discuss the demand
in our area.
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