Supply-Demand Will Determine Future Home Values

By
Real Estate Agent with Luxury Valley Homes Scottsdale SA524104000

Supply-Demand - Will home values continue to appreciate throughout 2018? The answer is simple: YES! – as long as there are more purchasers in the market than there are available homes for them to buy. This is known as the theory of “supply and demand,” which is defined as:

“The amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.”

When demand exceeds supply, prices go up. Every month this year, demand (buyer traffic) has increased as compared to last year and for the first five months of 2018, supply (the number of available listings) had decreased as compared to last year. However, a recent report by the National Association of Realtors (NAR) revealed the first year-over-year increase in supply in three years.

Here are the numbers for supply and demand as compared to last year since the beginning of 2018:

Supply-Demand

The increase in the June numbers doesn’t mean that prices won’t continue to appreciate. In that same report, Lawrence Yun, NAR’s Chief Economist, explained:

“It’s important to note that despite the modest year-over-year rise in inventory, the current level is far from what’s needed to satisfy demand levels.

Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up.”

Bottom Line

The reason home prices are still rising is that there are many purchasers looking to buy but very few homeowners ready to sell. This imbalance is the reason prices will remain on the uptick.

 

You may also like to read . . .

 

Jeff Daley

Get the best price - Every homeowner wants to make sure that they maximize their financial reward when selling their home, but how do you guarantee that you receive the maximum value for your house? Get The Best Price Here are two ways to ensure that you get the highest price possible. 1. Price it [...]

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Selling
Location:
Arizona Maricopa County Scottsdale
Groups:
Most Active ActiveRain Blogging Agents
Tags:
jeff daley
supplydemand
luxury valley homes
jane e daley
scottdale real estate arizona

Spam prevention
Show All Comments
Rainmaker
3,978,839
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Supply and demand is also determining today's current values and will continue to do so

Aug 12, 2018 03:45 PM #1
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
363,508

Jane & Jeff Daley, PhD

Scottsdale Real Estate Arizona
Show me current listings
*
*
*
*
Spam prevention

Additional Information