KCM Blog wrote a post on: House Prices: The Impact of Supply and Demand
Posted: 29 Nov 2010 04:00 AM PST
While most articles about housing prices are based on a National average, supply and demand can apply to any area's. In KCM Blog, House Prices: The Impact of Supply & Demand: The supply of inventory in the real estate industry is defined by the current months supply of homes that is available for sale. There are no steadfast rules that will apply to every category of housing.
However, here is a great guideline by which to go:
* 1-4 month's supply creates a sellers’ market where there are not enough homes to satisfy buyer demand. Appreciation is guaranteed.
* 5-6 month's supply creates a balanced market where historically home values appreciate at a rate a little greater than inflation.
* 7-8 month's supply creates a buyers’ market where the number of homes for sale exceeds the demand. Depreciation follows.
According to NAR the national average is 10.5 % making the National real estarte market a buyers' market.
Here is the local picture for Prince William County, Manassas, Manassas Park. Looking at a three month average of the number of homes that have sold and the current number of homes for sale we have a 3.52 month supply.
Our neighboring county of Fairfax has a 3.44 month supply, Loudoun County has a 4.33 month supply and Fauquier comes in with a 6.54 month supply.
Based on the current market if you have been thinking about selling this is a good time to do it. Sellers are in the drivers seat................for now.
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Whether you are a first time buyer or an experienced investor, you will find useful information about how to choose the "right" property, making an offer, negotiating, financing, mortgage rates, moving, and everything involved in making an informed real estate decision in today´s market.