SupplyDemandHouses_1-271x300Today’s real estate market is seeing a “supply and demand” issue. Simply put, there are not enough homes for sale in relation to what the home-buying market is demanding.

Supply and demand in real estate is represented by the current month’s supply of homes for sale (the number of homes for sale divided by the number of homes sold in the previous month).

Here is a guideline for pricing in various housing-demand markets:

1-4 months supply – This is a seller’s market in which there are not enough homes for the buyers’ demand. Homes appreciate in this type of market.

5-6 months supply – This is a balanced market and historically home values appreciate a bit above inflation.

7-8 months supply – This is a buyers’ market in which the number of homes for sale exceeds demain. Depreciation follows in this type of market.

In our region, we are currently experiencing a 4.1 month supply of homes for sale. This is the fewest active listings in the past eight years!

Nationally, there is a 4.2 month supply of homes available for sale which is the lowest seen since April 2005.

If you are thinking about selling, now is the time!  Call me!

Information courtesy of the KCM Blog.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s