A simplified explanation of supply and demand in the real estate world could be this: the relationship between current sellers (the supply) and buyers looking (demand), which is often reported in months’ supply of inventory. Our current level of supply is at its lowest level since 2006.
Our latest challenge is that there are not enough “good” homes on the market, representing a shortage of supply. There are several contributing factors though, such as, a lack of new construction, slower and less discounter foreclosures, more investors, and the fact that people simply just don’t want to sell their home at the bottom of the market. This shortage is allowing sellers to raise their asking prices to buyers are now willing to pay higher prices since they have been “shopping around” and see whats going on in the current market.
Click here to read the full article and to learn more about why we have a shortage and a lack of “good” homes, the demand portion of today’s market, and a few things to watch for on the market!