Why are home prices still rising? It is a simple answer. There are more purchasers in the market right now than there are available homes for them to buy. This is an example of the theory of “supply and demand” which is defined as:

“the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.”

When demand exceeds supply, prices go up. This is currently happening in the residential real estate market.

Here are the numbers for supply and demand as compared to last year for the last three months (March numbers are not yet available):

House Prices: Simply a Matter of Supply & Demand | MyKCM

In each of the last three months, demand (buyer traffic) has increased as compared to last year while supply (number of available listings) has decreased. If this situation persists, home values will continue to increase.

 

As we are about to bring in the New Year, families across the country will be deciding if this is the year that they will sell their current house and move into their dream home. Many will decide that it is smarter to wait until the spring “buyer’s market” to list their house. In the past, that might have made sense. However, this winter is not like recent years.

Ann Arbor and the Detroit area are on the 20 Hottest Housing Market List again in October.  This list is ranked based on the amounte of days a home is on the market.  Of course the lower inventory of homes available is one factor, and perhaps the leading factor, that impacts this result. Nonetheless, it is usually a good sign when Michigan appears on the same list as 12 California cities.  read the ariticle  The Michigan Real Estate Market is Good folks!  

New Homes Starting under $300,000 in Clarkston Schools Forest Pointe Subdivision

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