How Does the Supply of Homes for Sale Impact Buyer Demand?
The price of any item is determined by the supply of that item, as well as the market’s demand for it. 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).
The map below was created after asking the question: “How would you rate buyer traffic in your area?”
The darker the blue, the stronger the demand for homes is in that area. The survey showed that in 38 out of 50 states buyer demand was slightly lower than this time last year but remains strong. Only six states had a ‘stable’ demand level.
The index also asked: “How would you rate seller traffic in your area?”
As you can see from the map below, 23 states reported ‘weak’ seller traffic, 22 states and Washington D.C. reported ‘stable’ seller traffic, and 5 states reported ‘strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the buyers who are out looking for homes.
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 buyer demand, prices will continue to increase. If you are debating listing your home for sale, let’s get together so I can help you capitalize on the demand in the market now!
Blog Archive2018-12-11 11:01:29
How to Simply Increase Your Family Wealth by Paying for Housing
What If I Wait A Year to Buy a Home?
The Tale of Two Markets
Try Just One More Time
Where Are Interest Rates Headed in 2019?
Homeowners Aged 65+ Have 48x More Net Worth Than Renters
4 Reasons to Buy A Home This Winter!
7 Items to Check Before the Big Freeze
Further Proof It’s NOT 2008 All Over Again
24% of Renters Believe Winter is the Best Time to Buy a Home
The #1 Reason to Not Wait Until Spring to Sell Your House
Buyers: Don’t Be Surprised by Closing Costs!
3 Things Homeowners Are Thankful For
Females Are Making It a Priority to Invest in Real Estate!
7 Reasons to List Your House For Sale This Holiday Season
The Cost of Renting vs. Buying a Home
Home Sellers in Q3 Netted $61K at Resale
How to Honor a Veteran Today and Everyday
Highlights From This Month's Update
75% of Renters Have Been Misinformed
Why Has Housing Supply Increased as Sales Have Slowed Down?
2 Myths Holding Back Home Buyers
Are We Heading Towards Another Housing Bubble?
How Will Home Sales Measure Up Next Year?
Taking Fear Out of the Mortgage Process
Click here to see ALL articles.