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

Dated: 10/01/2019

Views: 33

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

DaShawn Tharpe

My name is DaShawn Tharpe I am a native of Indianapolis. I have 2 kids, a son, and a daughter. I attended Shortridge Middle School and graduated from Broad Ripple High School where I had the opportun....

Latest Blog Posts

Will Surging Unemployment Crush Home Sales?

Will Surging Unemployment Crush Home Sales?Ten million Americans lost their jobs over the last two weeks. The next announced unemployment rate on May 8th is expected to be in the double digits.

Read More

Equity Gain Growing in Nearly Every State

Equity Gain Growing in Nearly Every StateRising home prices have been in the news a lot lately, and much of the focus is on whether they’re accelerating too quickly and how sustainable the

Read More

Thinking of Selling? Now May Be the Time

Thinking of Selling? Now May Be the Time.The housing market has started off much stronger this year than it did last year. Lower mortgage interest rates have been a driving factor in that

Read More

The Overlooked Financial Advantages of Homeownership

The Overlooked Financial Advantages of HomeownershipThere are many clear financial benefits to owning a home: increasing equity, building net worth, growing appreciation, and more. If you’re a

Read More