Whether you're selling shoes or homes, the basic economic principle of supply and demand governs the price of any product. If you have lots of inventory and low demand, your price will be low. If you have a limited supply and lots of folks want your product, your price will be high.
What does that have to do with our current market? HUD has been tracking housing numbers since its creation in the 1960's. In the one housing market crash (that was caused by faulty lending practices), supply was at an all time high in 2006 and 2007. In 2021, we're in the exact opposite situation with the lowest inventory of homes available ever. New construction is not coming to the rescue either. With supply chain disruptions, builders are not able to ramp up production and build homes to meet the demand. It will potentially be a decade or more before our current supply of homes is large enough to balance demand and lower prices. My job as a real estate professional is to share information and provide facts, not feelings or fluff. If you feel prices are too high, me too! However, the market is not decided by our feelings. Prices are impacted by supply and demand. We have the lowest supply in history while folks from all over the country are flocking to our area for great weather and low taxes. Please don't wait to purchase a home because you think prices are too high.
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