There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient(data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of“irrational exuberance”(this is also untrue as prices are not at peak levels when they are adjusted for inflation),there seems to be no shortage of opinion.
However, the increase in prices is easily explained bythe theory of supply & demand. Whenever there is a limited supply of an item that is in high demand, prices increase.
It is that simple. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything more than seven months will cause prices to depreciate(see chart 1).
According to theExisting Home Sales Reportfrom theNational Association of Realtors(NAR), the monthly inventory of homes has been below six months for the last four years(see chart 2).
If buyer demand outpaces the current supply of existing homes for sale, prices will continue to appreciate. Nothing nefarious is taking place. It is simply the theory of supply & demand working as it should.
Lets look up your Homes True Value.
When you call me or go to my Web Page I will give you a FREE NO OBLIGATION Comparative Market Analysis of your Homes True Value according to what is currently selling in the Market. I look at what your competition is and what has sold.
I am seeing huge jumps in Home Selling Prices in my surrounding areas compared with three years ago. I just did a Market Analysis in the area and the Home Values are on the rise.The numbers tell the truth.
It never hurts to keep an eye on your Home Equity.
If you are in the Market to Buy a Home, I wouldn't straddle the fence too long it could end up costing you more in lending fees, interest rates and home prices could increase before you make the decision to start.
Author:Barbara Leatherwood Phone: 405-301-7824 Dated: January 12th 2018 Views: 156 About Barbara: ...
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My name is Brenda Seagroves. I am a real estate professional in the greater Oklahoma City Metro Area. I was born and raised in Oklahoma and have called Oklahoma City my home since 2004, with my husband Dennis and our blended family of six children. We own a very successful heating/air and commercial refrigeration company, Citywide Refrigeration, Inc.
In my practice of real estate I pride myself in making relationships with my clients. I believe in great customer service, consistent communication, strong ethics and attention to detail. Ensuring a positive experience for everyone in the transaction: buyers, sellers, realtors, mortgage company down to the title/closing office. It is imperative to have great communication with all involved. You, as a client, are my number one priority. It's not about me as your agent; it's about you and making your dream, as a homeowner be as smooth and successful as possible.
Outside of my real estate business, my husband and I are certified scuba divers. I absolutely love diving. Floating through the water is so relaxing and soothing to my soul, not to mention the exquisite animal life and plant life your normally do not see everyday.
My husband says I am an extreme adventurer. I disagree. There are some things I will not do, however, I do love a challenge.
Five words that sums up me as a person and Realtor®, integrity, commitment, passion, adventurous and fun.