BUYER DEMAND CONTINUES TO OUTPACE INVENTORY OF HOMES FOR SALE
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 Realtors Confidence Index .
Their latest edition sheds some light on the relationship between Seller Traffic ( supply ) and Buyer Traffic ( demand ).
Buyer Demand
The map on the right was created after asking the question :
“ How would your rate buyer traffic in your area ?”
The darker the blue , more buyers are looking for homes in that area . Only four states came in with a weak demand level .
Bottom Line
Seller Supply The Index also asked :
“ How would you rate seller traffic in your area ?”
As you can see from the map on the left , 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 homes .
Looking 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 .
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