The DilemmaOne of the most popular objections of my friends and other millennials about purchasing a home is they can't afford it. These days with all the assistance available for home buyers, money
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 theirexpectations 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 BuyerTraffic (demand).
The map on the right was createdafter asking the question:
“How would you rate buyer trafficin your area?”
The darker the blue, the morebuyers are looking for homes inthat area.
Only three states camein with a weak demand level.
The Index also asked:
“How would you rate seller trafficin your area?”
As you can see from the map onthe left, a good portion of thecountry has weak seller traffic,meaning there are far fewer homeson the market than what is neededto satisfy the buyers who are outlooking for their dream homes.
Looking at the maps above, it is not hard to see why prices are appreciating in many areas of thecountry. Until the supply of homes for sale starts to meet the buyer demand, prices will continueto increase.5
Terry is the Principal Broker at Regional Realty. He is a motivated Realtor specializing with investors and new home buyers located in the following areas; Alexandria, Ft. Thomas, Ft. Mitchell, Indepe....