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 monthly REALTORS Confidence Index. Their latest edition sheds some light on the relationship between Seller Traffic (supply) and Buyer Traffic (demand).
In New Hampshire presently, the Demand is much higher than the Supply. This has caused a number of dynamics that have to be managed.
- Good propeties sell fast - but may also get into a bidding war.
- Properties may get overvalued and thus not appraise.
- Buyers may skip important parts of the purchase process (e.g. Home Inspection etc.) to be viewed as "stronger"than the competition.
- Some sellers may have a significantly inflated view of their property which may cause it to be ignored....and go "stale".
- Some Sellers may attempt a FSBO feeling that "selling" in this environment is a piece of cake..!
These are just a few of the dynamics we face in the current market. An important point to note, whether you are a Buyer or a Seller...this is not a time for Amateur Hour. A seasoned Real Estate professional is needed to help manage you through an increasingly tricky process. Working with a Realtor assures that you will have appropriate representation, have reviewed all the risks of your actions and are in a position to have the desired, successful outcome for your transaction. For more information please contact Missy Adams.
Over All Trends
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 in that area. Only six states had a weak demand level.
The Index also asked: “How would you rate seller traffic in your area?”
As you can see from the map below, the majority 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. If you are debating listing your home for sale, let’s get together to help you capitalize on the demand in the market now!
The Adams Home Team
20 Trafalgar Square, Suite 101
Web: Missy Adams