Darcy Truppo Denver Real Estate

  • Home
  • Search
    • Advanced Search Form
    • Interactive Map Search
    • Featured Listings
    • Aurora
    • Centennial
    • Englewood
    • Highlands Ranch
  • Buy
    • Get Property Alerts
    • Relocation Help
  • Sell
    • What’s My Home Worth?
    • Relocation Help
  • About
    • About Darcy Truppo
    • Testimonials
    • Blog
  • Contact
  • Register | Login

August 9, 2018 By simplify

Supply & Demand Will Determine Future Home Values

Supply & Demand Will Determine Future Home Values | Simplifying The Market

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 Will Determine Future Home Values | Simplifying The Market

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.

Filed Under: For Buyers, For Sellers, Housing Market Updates, Pricing

Recent Posts

  • 3 Reasons Why We Are Not Heading Toward Another Housing Crash
  • Why A Normal Market is Just What We Need
  • 2019 Will Be a Great Year for Buyers AND Sellers
  • Millionaire To Millennials: Don’t Get Stuck Renting A Home… Buy One!
  • Where Did Americans Move in 2018? [INFOGRAPHIC]

Categories

  • Baby Boomers
  • Buying Myths
  • Demographics
  • Down Payments
  • Featured
  • First Time Home Buyers
  • For Buyers
  • For Sellers
  • FSBOs
  • Generation X
  • Housing Market Updates
  • Infographics
  • Interest Rates
  • Luxury Market
  • Millennials
  • Move-Up Buyers
  • New Construction
  • Pricing
  • Rent vs. Buy
  • Selling Myths
  • Senior Market

    Brokers Guild Cherry Creek Ltd   cell +1 (303) 303-667-6038   Email Me
  • Twitter
  • Facebook
  • LinkedIn
  • RSS
Sorry, this account has been canceled -
Equal Housing
Blue Fire Group    Real Estate Websites
© 2019 Copyright
LAC | Wordpress Admin
My Buying Buddy    Powered By MyBuyingBuddy ®