This discussion is not just for stat nerds like me. It is for the clients who appreciate data analysis.
I remember sitting glassy eyed in Macroeconomics 4 while at the University of Missouri. A rough night of doing who knows what made it hard to focus, plus it was not very exciting…
Clearly, I was oblivious to the importance of such a concept of Supply & Demand in regard to economics and real estate. Oh, how I wish I could go back and smack myself in the face and wake myself up. Economics is everywhere, at work all the time. Now we’ll discuss selling and/or purchasing a home, and how supply and demand is part of the foundation of a home’s market value.
I’ll admit, some people are not enthused to read about this stuff…and I don’t blame them. Again, that’s why our clients count on us as professionals.
The basic principle of Supply & Demand states that the price/cost of any house varies directly with Demand and inversely with Supply. Namely, as Demand goes up, prices will go up. In todays environment (as of May 2020), demand is still high, even with the Covid pandemic. People still need a place to live, and where better than your own home, instead of an apartment complex?
For a home, Supply is the amount of other real estate available (for sale or rent). This can be at various prices in a given market (we’ll use Clay and Platte County in April 2020 for our example) for a given period of time.
Stop me if you heard this one, but there is a lack of homes to purchase. You’ll see in the above charts the lack of inventory. What does this mean to you? Certain price points will bring a premium purchase price.
Most clients would prefer to either see the data or have it explained. If you would like to see your approximate property value in todays climate, visit my page on our website: https://www.aspiresellskc.com/derek-espeer/. Further, if you’d like to see market activity for your neighborhood, email me at firstname.lastname@example.org, and I’ll set you up.
If you’ve thought of selling, please contact me and we will discuss a strategy to get you in your new home, while maximizing your return with market conditions and perimeters.