Supply Demand Will Determine Future Home Values

Dated: 08/09/2018

Views: 81

Image title

Supply & Demand Will Determine Future Home Values

   For Buyers, For Sellers, Housing Market Updates, Pricing

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:

Image title

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.


Blog author image

Charles Juarez

With my expertise in reality for both buying or selling a home in San Antonio, and surrounding areas. You have found the right resource for your real estate needs. Whether you are looking for a new ho....

Latest Blog Posts

3 Reasons Why We Are Not Heading Toward Another Housing Crash

3 Reasons Why We Are Not Heading Toward Another Housing Crash  Thursday, February 21st, 2019  First Time Home Buyers, For Buyers, For Sellers, Housing Market Updates,

Read More

New Home Experts Highland Homes At Monteverde

Your New Home Experts, please note that our services are FREE to the home buyer, so don’t let that stop you. Let us know if you are ready for the next step. I am just a phone call away, so call

Read More

2019 Will Be A Great Year For Buyers AND Sellers

2019 Will Be a Great Year for Buyers AND SellersMany homeowners believe that rising interest rates and home prices have scared away buyers and therefore have not listed their

Read More

Millionaire To Millennials Dont Get Stuck Renting A Home Buy One

Millionaire To Millennials: Don’t Get Stuck Renting A Home… Buy One!  Monday, February 18th, 2019  First Time Home Buyers, For Buyers, Millennials, Move-Up,

Read More