The latest #Existing #Home #Sales #Report from the National 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.
Bottom Line
Buyer demand continues to outpace the supply of #homes for sale. Listing your home in the winter attracts serious buyers who are looking to close the transaction quickly.
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