You’ve heard about it, you also are probably familiar with this concept. The concept of supply and demand. In it’s most basic form it means that if something is in high demand, and if there is a shortage of the item, the price for that item will rise. Conversely, if there is little demand and a good supply of that item, the price will be less.
Sounds pretty simple, does it not?
Well yes, it is simple. But this blog is not about economics and marketing. This blog is about real estate. So how does the law of supply and demand affect real estate, and more importantly, you?
If you are not making plans to either buy or sell a property, it does not affect you in the slightest. But if you are planning to either buy or sell a property, it does affect you.
You see, right now there is a shortage of available homes that are for sale. We currently have less than a six month supply of homes available. What this means is that if there were no new properties becoming available for purchase, in less than six months there would be nothing available to purchase. This represents supply.
And there are a lot of potential buyers out there who are looking, every day, to buy a home. This represent demand.
Looking from the other side, it there is in excess of a six month supply of available homes, this shows an excess of available homes, thus the supply is greater. And the reason there is an excess? There are less buyers out there than there are sellers.
If you are a seller, here is how the laws of supply and demand affect you. With high demand, your home will probably sell quickly, and for a premium price. (And if it doesn’t, your home is priced too high).
But if you are a buyer, be prepared to pay more than you probably should to get a home. You also may need to compromise between what you want and what you can actually get.
Do you understand it now?
So, whether or not you are a buyer or a seller, a good Realtor is a necessity. So give us a call at 732-598-7700, or start your sear online at www.BunnyandArt.com www.55PlusInOcean.com www.55PlusinMonmouth.com