Supply Vs. Demand

The old supply versus demand theory says:

"as inventory decreases, so long as demand stays constant, price must increase."

The above chart shows Q3 supply. At the end of Q3, supply is at its lowest point for the entire quarter. So what about demand? Are prices going to go up?

In week 2 of June supply was at 1744 with a demand of 1038. At its most basic this means that of 1744 homes, 1038 were sold (these are rolling monthly numbers week over week).

Beginning Q3 = 1038/1744 = 59%

So in that given thirty day period, 59% of listed residential inventory sold. What does the end of Q3 say? In week 4 of September 1338 homes were listed while 1138 sold.

Ending Q3 = 1138/1338 = 85%.

That makes a 26% difference between the beginning and end of Q3. This does not guarantee a direct translation into a 26% value increase but if you were thinking about selling at any time in the recent past, now is the time to put that home on the market. Inventory is 76% of where it was while sales are 110%. Inventory down, demand up.

While "they" say it is bad form to list your home for "more than it's worth," it is also true that you cannot win the lottery if you do not buy a ticket. Why not? If you think your home might be worth $300,000, why not list it for $345,000 and see what happens? Value is often subjective, not objective. Maybe someone really wants to be in your neighborhood? Are you in a prime school district? Are you on or a near a main thoroughfare that has recently been expanded with the potential to be rezoned commercial? You don't know what you don't know until you know what you don't know. When supply is as low as it is and people are getting multiple offers on the first day of listing, why not buy a lottery ticket?

Let me compare your home to recent sales and come up with a market value. Let us take that market value and ask ourselves, "How much money will MAKE me move?" If that number is within 15% of market value, why not? If you aren't interested in increasing your ROI and turning your equity into a newer, bigger, higher end finished, yard with a pool, home office with a door and window, three car garage, new to you boat in the backyard, more yard for kids and animals type home, why have you even read this far?

Check out the bottom of my web page " seansmithsells.com " for a brief explanation of how reinvesting your equity can affect your pocketbook in the future.

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Text me and introduce yourself @ 501-278-7782