How Does The Supply Of Home For Sale Impact Buyer Demand

Dated: September 30 2019

Views: 97

How Does the Supply of Homes for Sale Impact Buyer Demand?

How Does the Supply of Homes for Sale Impact Buyer Demand? | MyKCM

The price of any item is determined by supply, as well as the market’s demand for the item. The National Association of REALTORS (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for their monthly REALTORS Confidence Index.

Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand).

Buyer Demand

The map below was created after asking the question: “How would you rate buyer traffic in your area?”How Does the Supply of Homes for Sale Impact Buyer Demand? | MyKCMThe darker the blue, the stronger the demand for homes is in that area. The survey shows that in 3 of the 50 U.S. states, buyer demand is now very strong; only 2 of the 50 states have a ‘weak’ demand. Overall, buyer demand is slightly lower than this time last year but remains strong.

Seller Supply 

The index also asked: “How would you rate seller traffic in your area?”How Does the Supply of Homes for Sale Impact Buyer Demand? | MyKCMAs the map below shows, 18 states reported ‘weak’ seller traffic, 29 states and Washington, D.C. reported ‘stable’ seller traffic, and 3 states reported ‘strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the buyers who are looking for homes.

Bottom Line

Looking at the maps above, it is not hard to see why prices are appreciating in many areas of the country. Until the supply of homes for sale starts to meet buyer demand, prices will continue to increase. If you are debating listing your home for sale, let’s get together to help you capitalize on the demand in our market now.

Blog author image

Jennifer Dorn

Jennifer Dorn is an Associate Broker with Berkshire Hathaway HomeServices Select Realty (BHHS Select Realty) and served as the Managing Broker for both Realty World Select (RWS) and BHHS Select Realty....

Latest Blog Posts

Knowledge Is Power On The Path To Homeownership 12012020

Knowledge Is Power on the Path to HomeownershipHomeownership is on the goal list for many young adults, but sometimes it’s hard to know exactly how to get there. From understanding the homebuying

Read More

Knowledge Is Power On The Path To Homeownership

Knowledge Is Power on the Path to HomeownershipHomeownership is on the goal list for many young adults, but sometimes it’s hard to know exactly how to get there. From understanding the homebuying

Read More

5 Tips For Homebuyers Who Want To Make A Competitive Offer 11302020

5 Tips for Homebuyers Who Want to Make a Competitive OfferToday’s real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited

Read More

5 Tips For Homebuyers Who Want To Make A Competitive Offer

5 Tips for Homebuyers Who Want to Make a Competitive OfferToday’s real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited

Read More