IT DOESN’T MATTER IF YOU’RE SELLING SUITS, JEWELRY, CARS OR HOMES… THE PRICE OF ANYTHING IS DICTATED BY SUPPLY & DEMAND.
TOWN & COUNTRY HAS BEEN BLOGGING ABOUT THE FACT THAT ACTIVITY LEVELS ARE CONSISTENTLY INCREASING AND INVENTORY LEVELS HAVE BEEN DECLINING. YOU CAN FINISH THE SENTENCE … THIS TREND WILL ULTIMATELY YIELD PRICE INCREASES. WHEN AND TO WHAT EXTENT WILL BE DETERMINED BY SPECIFIC MARKETS WITHIN MARKETS AND THEIR SPECIFIC SUPPLY & DEMAND RATIO.
NATIONAL ASSOCIATION OF REALTORS RELEASED THEIR NOVEMBER REPORT WHICH WAS THE STRONGEST IN SEVERAL YEARS. PREVIOUSLY OWNED HOME SALES ROSE 5.9% FROM OCTOBER AND 14.5% FROM NOVEMBER 2011 TO A SEASONALLY ADJUSTED RATE OF 5.04 MILLION UNITS. IT WAS ONLY THE 3RD TIME SINCE JULY 2007 THAT HOME SALES WERE OVER THE 5 MILLION MARK.
THE NUMBER OF HOMES FOR SALE FELL TO THE LOWEST LEVELS SINCE THE END OF 2001 TO 2.03 MILLION. ACCORDING TO NAR, INVENTORIES HAVE BEEN STEADILY DECLINING FOR THE PAST 3 YEARS.
NATIONALLY, THE INCREASED DEMAND AND DIMINISHING SUPPLY HAVE LEAD TO PRICE INCREASES IN OCTOBER OF 0.5% FROM SEPTEMBER AND 5.6% FROM THE PRIOR YEAR.
AGAIN, ARE YOU IN?