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).
The map below was created after asking the question: “How would your rate buyer traffic in your area?”
darker the blue, the stronger the demand for homes in that area. Only
four states came in with a weak or moderate demand level.
The Index also asked: “How would your rate seller traffic in your area?”
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
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 and discuss the
demand in our area.