Why are home prices still rising? It is a simple answer. There are more purchasers in the market right now than there are available homes for them to buy. This is an example of 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. This is currently happening in the residential real estate market.
Here are the numbers for supply and demand as compared to last year for the last three months(March numbers are not yet available):
In each of the last three months, demand (buyer traffic) has increased as compared to last year while supply (number of available listings) has decreased. If this situation persists, home values will continue to increase.
The reason home prices are still rising is because 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.
Author:Kenneth Landers Phone: 972-400-3634 Dated: April 5th 2018 Views: 799 About Kenneth: Kenneth Landers, a native born Dallasite, realized early on in life that he belonged in the service ...
View our latest blog posts in your RSS reader. Click here to access.
Chastin J. Miles is a full-service Real Estate agent specializing in Dallas real estate, lifestyle management, and client representation in a broad spectrum of classes including single-family residential, condos and developments, commercial real estate, and luxury leases.
Chastin J. Miles aims to bring a new light and perspective to the traditional real estate agent. He extends far beyond what a conventional agent offers. Chastin J. Miles envisions himself as both a lifestyle agent committed to informing and connecting our local communities, and as an agent offering design, marketing, and sales solutions for buyers, sellers, developers, and investors both local and internationally.