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Rainmaker
593,631
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Like this.

The graphic is essential and allows the owner to 'see' the market their house must participate as well as an opportunity to explore what each market type means to the owner.

Green means more money.

Read means NOT more money.

Dec 15, 2016 09:24 AM
Rainmaker
224,906
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

It is basic economics. If there is more supply than demand, prices go down. If there is more demand than supply, prices go up. Our market is a seller's market with less than 3 months supply - and prices have been escalating roughly 10% per year for the last 5 years. During the recession, we had a buyer's market with much more inventory than demand and prices fell drastically.

Dec 15, 2016 11:04 AM
Ambassador
3,576,335
Praful Thakkar
eXp Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Michel Brien - wow! Good answer from Annette Lawrence , Palm Harbor, FL 727-420-4041.

Dec 15, 2016 02:44 PM
Rainmaker
2,579,271
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Annette Lawrence , Palm Harbor, FL 727-420-4041 nailed this one!

Dec 16, 2016 04:15 AM
Ambassador
3,612,693
Patricia Kennedy
Evers & Company Real Estate, Inc. - Washington, DC
For Your Home in the Capital

Usually, there are fewer months of inventory in a seller's market, and prices tend to be on the increase.  More months on the market, and it's the reverse. But this is only a sort of rule of thumb.

Dec 15, 2016 05:31 PM
Rainmaker
3,177,912
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

I like the detailed answer from Annette Lawrence , Palm Harbor, FL 727-420-4041 ! Very informative!

Dec 15, 2016 05:13 PM
Ambassador
2,159,744
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

The law of supply and demand should explain this pretty well. 

Dec 15, 2016 04:57 PM
Rainmaker
1,393,703
Sandy Padula and Norm Padula, JD, GRI NMLS#1483386
Realty One Group - Carlsbad, CA
Presence, Persistence & Perseverance

Thanks Annette Lawrence , Palm Harbor, FL 727-420-4041 for reducing my migrane this mornng!

Dec 16, 2016 06:00 AM
Rainmaker
2,074,659
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Supply and demand... more supply, less demand, prices go down. More demand, less supply, price go up. Run your numbers.

Dec 16, 2016 04:11 AM
Ambassador
3,067,984
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

I do like Annette Lawrence , Palm Harbor, FL 727-420-4041 's graphic.

Dec 15, 2016 08:22 PM
Ambassador
1,831,700
Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   Economics 101.  Supply and demand.

     Create a chart (like Annette Lawrence , Palm Harbor, FL 727-420-4041) using RPR, your local MLS data, or some other reliable source.

Dec 15, 2016 08:09 PM
Ambassador
2,197,557
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Great answer, Annette Lawrence , Palm Harbor, FL 727-420-4041!

Dec 15, 2016 07:14 PM
Rainmaker
960,726
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I'm going to second Annette Lawrence , Palm Harbor, FL 727-420-4041 comments, she has a great answer.

Dec 15, 2016 07:01 PM
Ambassador
2,838,513
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Northern VA

Supply and demand is fairly simple to explain.  The more buyers have to choose from, the more aggressive sellers are going to be with their price to get those buyers.  A lot of inventory means a lack of buyers, so prices go down.  

Conversely, a lack of inventory means prices go up because there isn't as much for buyers to choose from.  

Dec 15, 2016 02:32 PM
Rainmaker
2,347,912
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

Supply and demand ecconomics here!

Dec 15, 2016 12:33 PM
Rainmaker
2,424,286
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Broker

I believe you are referring to absorption rate.  It may or may not mean more appreciation or depreciation.

Dec 15, 2016 11:00 AM
Rainmaker
3,914,683
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

Annette gave you the answer....

Dec 15, 2016 09:44 AM
Ambassador
1,209,241
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Your real estate instructor should know this one.

Dec 15, 2016 09:39 AM
Rainmaker
3,896,251
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It's the law of supply and demand.

Dec 18, 2016 05:12 PM
Rainmaker
684,241
Jennifer Mackay
Keller Williams Success Realty - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

This is commonly referred to as absorption rate if I understand your question, however supply and demand dictates price even over time

Dec 16, 2016 06:25 AM
Rainmaker
3,678,931
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Others have answered.

Dec 16, 2016 04:54 AM
Rainmaker
2,426,811
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

In short when you have a shortage of homes for sale, and lots of buyers prices rise. When you have more homes than buyers, prices decline

Dec 16, 2016 04:47 AM
Ambassador
1,609,634
Harry F. D'Elia
Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

need more time

Dec 15, 2016 05:18 PM
Rainmaker
1,155,754
FN LN
Toronto, ON

Depreciation is an accounting and tax concept and is not applied to current assets such as inventory. 

Dec 15, 2016 12:37 PM
Ambassador
3,337,340
Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Lynnea Miller Says it well.

Dec 15, 2016 11:53 AM
Rainmaker
809,461
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Any basic economics class will point you in the right direction Michael.

Dec 15, 2016 11:40 AM
Rainmaker
4,234,110
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

You have some good answers. Much depends upon your local market conditions.

Dec 15, 2016 11:37 AM