Have you ever heard of the laws of supply and demand? It’s a simple concept which states that if there is a high demand for a product, combined with a low supply of that said product, the cost to obtain that product rises. On the flip side, if there is a low demand for the product and there’s a lot of supply, the prices will fall. Does this make sense?
Now – let’s apply the laws of supply and demand to real estate.
If the average time a home is available for sale is 180 days or less, this is known as a Seller’s Market. If it’s 181 days to 240 days, this is a normal or neutral market. Anything in excess of 240 days means there is more supply available than buyers, and we are then in a Buyer’s Market.
The average days on market have been below 180 since August of 2012. And the median price of homes in that period has risen to where it’s now over $228,000! The price of the median home has risen in each of the last 60 months. And, on average, over 15,000 homes sell each and every day!
Let’s see – below average supply, above average demand? Yes. We are in a Seller’s Market and have been for quite some time. And in a Seller’s Market, what is it a good time to do? That’s right – SELL!