Supply and demand drives prices in real estate just like anywhere else. That is why it is important that sellers understand the impact of inventory and buyer demand when preparing to sell.
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 Realtors Confidence Index.
If you are thinking of selling your home anytime in the next year, please contact us today. We can help you prepare your home for sale to get top dollar.
Their latest edition sheds some light on the relationship between Seller Traffic (supply) and Buyer Traffic (demand).
The map above was created after asking the question:
“How would you rate buyer traffic in your area?”
The darker the blue, the more buyers are looking for homes in that area. Only 3 states came in with a weak demand level.
The Index also asked:
“How would you rate seller traffic in your area?”
As you can see from the map above, a good portion 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.
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.
For more information, or to set up a no-obligation consultation to find out what your home is worth in today’s market, contact Brian Pate today at 919-669-4575.