Buyer Demand Continues to Outpace Inventory of Homes For Sale
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.
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 more buyers are looking for homes in that area. Only two 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 on the left, 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.
The housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery.
Home values are up, home sales are up, and distressed sales (foreclosures and short sales) have fallen to their lowest points in years. It seems that the market will continue to strengthen in 2018.
1. Demand Is Strong
2. There Is Less Competition Now
3. The Process Will Be Quicker
4. There Will Never Be a Better Time to Move Up
5. It’s Time to Move on With Your Life
When do I get my sales proceeds?
When do I cancel my homeowners fire insurance?
What will I need to bring with me when I go to sign my papers?
What is a statement of information?
I don’t understand tax prorations. How do they work?
Why do I have to pay interest on my loan payoff past the date of recording?
What do I do if I’m an out of state seller and selling property in California?
What is a Deed of Reconveyance?
When do I get a refund from my impound account?
Why does my escrow officer require that I complete a 1099 form?
Do your future plans include selling your house and move?
Are you an empty-nester? Do you want to retire where you are, or does a vacation destination sound more your lifestyle? Are you close to retirement and not ready to move yet, but living in a home that is too big in size and maintenance needs?
How can you line up your current needs with your goals and dreams for the future? The answer for many might be in the equity you have in your house.