Although our area has not experienced the rollercoaster of appreciation as the other parts of the country has, homes in the area have seen a steady increase in value. While there are many factors contributing to this appreciation, the main driver is a result of supply and demand.
The real estate industry uses supply and demand to determine the current state of the market. Typically, if there is a surplus of homes in the desired price range, then it is a buyer’s market. Similar to going to the grocery store, if there are more options and more competition, then the prices will be lower, and the buyer has more power.
Vice versa, if there is a shortage of those same homes, then the market shifts to a seller’s market. “Years of low inventory and pent-up buyer demand have resulted in a seller’s market in the affordable price ranges across many of our local areas,” said Caroline Ruhl, CEO of Ruhl&Ruhl Realtors.
We are mainly seeing the shortage of inventory in the more affordable price points. The upper price points simply do not have the same amount of demand. This trend is visible when looking at the average days on market. Typically homes in the upper third sit on the market for 66% longer than its lower counterpart.
Before listing your home or looking to buy a new one, it is important to understand the current market conditions, so you can get the most out of your money.
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