Today I would like to discuss supply and demand and how it impacts the real estate market. If you are currently looking for a home, or maybe you’ve been considering selling a home, you may be curious about rising prices and when they might stop rising.
Supply is the number of homes that we have available for sale. In the real estate world, this is called inventory.
Meanwhile, demand is how much buyers need or want to purchase those homes that are available.
Despite rumors of a big boom in the market, we actually have very little inventory. There aren’t enough homes available for sale to match buyers’ demand. This can cause home prices to increase. Since there is a lack of inventory, the homes that are listed tend to see heightened activity, which prompts buyers to pay more for them and for sellers to get more.
At some point, we reached a bit of a peak. Now we are seeing a very slight decrease in prices from last month’s data. We are closely watching the market to see if that decrease will slow down, but don’t think that our prices are going to drop too significantly, because they are not.
Eventually, supply and demand will balance out, and we will have more of an equilibrium where we will be able to match what the buyers want and what the sellers are listing for.
If you have any additional questions about this or general real estate questions, please don’t hesitate to contact me. I look forward to speaking with you.