Everyone knows that with sales, supply and demand helps with determining the pricing of goods. Whether you’re a vendor selling the best hotdogs on the street corner or your name is Spacely and you’re selling sprockets, the fact is that if you have more of a product than there are buyers, an increase in the product’s value can stall. On the flip side, if there is less availability of a product and too many buyers, your sales can explode allowing your prices to increase higher and higher!
These same principles apply in my field of Real Estate. Just as I noted in my last blog, after an extreme shortage of homes available here in Las Vegas (less than a one month surplus of available homes), our home inventory has nearly doubled since the beginning of summer. It’s caused many here locally to wonder if we’re heading for another “bubble” and if we can expect prices to drop. I chalk this up to an overreaction by those who are unfamiliar with the fact the prices have just temporarily stabilized after a recent flood of homes being listed for sale. This started with the slowdown of investors gobbling up homes to rent out and the combination of current homeowners deciding that the time was right to sell with the property values increasing.
Another key factor is that historically the beginning of Fall through to the Winter months is the slow time in real estate. During these seasons a lot of families have already settled in to their current residence and are not looking to relocate during the school year. However many are forced to move for a new job, outgrew their existing home, are done renting and want home ownership, etc. There is still plenty of movement happening….especially with the continuation of ridiculously low interest rates!
The recent article I read on www.vegasinc.com shares my opinion. You can read it here:
Run of rising Las Vegas home prices reaches an end
The key thing to remember is that we’re still at a National Shortage for inventory and homeowners have priced their homes accordingly because of that. It’s just instead of a home being on the market only a few weeks before getting an offer, it’s now slightly longer as long as the price is realistic and within reason. There will always be buyers and sellers. It’s just a matter of realizing who benefits from the current “supply and demand” situation.
To find out if you can take advantage of the current situation to buy or sell, contact me today to get started.
Mike Rebarchick
(Las Vegas aerial homes photo by delbz)