The latestExisting Home Sales Reportfrom theNational Association of Realtors (NAR)revealed a direct correlation between a lack of inventory and rising prices.
We are all familiar with the concept of supply and demand. As the demand for an item increases the supply of that same item goes down, driving prices up.
Year-over-year inventory levels have dropped each of the last 18 months, as inventory now stands at a 4.0-month supply, well below the 6.0-month supply needed for a 'normal' market.
The median price of homes sold in November (the latest data available) was $234,900, up 6.8% from last year and marking the 57thconsecutive month with year-over-year gains.
NAR's Chief Economist,Lawrence Yun had this to say:
"Existing housing supply at the beginning of the year was inadequate and is now even worse heading into 2017. Rental units are also seeing this shortage. As a result, both home prices and rents continue to far outstrip incomes in much of the country."
But there is good news about rising prices.More and more homeowners are recovering from a negative equity situation and learning that they are able to sell their homes and either move up to their dream home or downsize to a property that will better suit their needs. Look for these homes to come to market soon.
Buyer demand continues to outpace the supply of homes for sale. Listing your home in the winter attractsserious buyerswho are looking to close the transaction quickly.
Author:Heather F Davidson Phone: 609-209-7581 Dated: January 4th 2017 Views: 158 About Heather: I'm an agent whose business is built on the promise of exceptional customer service. If you are sel...
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I'm an agent whose business is built on the promise of exceptional customer service. If you are selling your home or searching for that special place to call your own, you deserve to work with someone you trust-someone who you know has your best interests in mind. Whatever your particular Real Estate need, I'll work hard to make sure that you are completely satisfied. I have the knowledge, experience, and dedication that it takes to get results.
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Very knowledgeable of area and mortgage practices to show houses that met the criteria of loan needs. Aided in narrowing down a large market are and focus on potential houses. Walk through from beginning to end to acquire house. Her imagination and vision showed the house's potential. Very pleased, and this is coming from a picky and hard to please man..."