• HOME
    HOME
  • PROPERTY SEARCH
    PROPERTY SEARCH
    • DREAM HOME FINDER
      DREAM HOME FINDER
    • BERKELEY HEIGHTS HOMES
      BERKELEY HEIGHTS HOMES
    • DUNELLEN HOMES
      DUNELLEN HOMES
    • FANWOOD HOMES
      FANWOOD HOMES
    • METUCHEN HOMES
      METUCHEN HOMES
    • NORTH PLAINFIELD HOMES
      NORTH PLAINFIELD HOMES
    • NEW PROVIDENCE HOMES
      NEW PROVIDENCE HOMES
    • PISCATAWAY HOMES
      PISCATAWAY HOMES
    • SCOTCH PLAINS HOMES
      SCOTCH PLAINS HOMES
    • SOUTH PLAINFIELD HOMES
      SOUTH PLAINFIELD HOMES
    • WATCHUNG HOMES
      WATCHUNG HOMES
    • WARREN HOMES
      WARREN HOMES
    • SOMERSET HOMES
      SOMERSET HOMES
  • HOME SELLERS
    HOME SELLERS
    • HOME VALUATION REQUEST
      HOME VALUATION REQUEST
    • STAGING YOUR HOME FOR SALE
      STAGING YOUR HOME FOR SALE
    • COMMUNITY INFO
      COMMUNITY INFO
    • LOCAL SERVICE PROVIDERS
      LOCAL SERVICE PROVIDERS
    • NEWS FOR HOME SELLERS
      NEWS FOR HOME SELLERS
  • HOME BUYERS
    HOME BUYERS
    • LUXURY HOMES IN CENTRAL NEW JERSEY
      LUXURY HOMES IN CENTRAL NEW JERSEY
    • CONDOS & TOWNHOUSES
      CONDOS & TOWNHOUSES
    • RETIREMENT HOUSING IN NEW JERSEY
      RETIREMENT HOUSING IN NEW JERSEY
    • MORTGAGE CALCULATOR
      MORTGAGE CALCULATOR
    • LOCAL SERVICE PROVIDERS
      LOCAL SERVICE PROVIDERS
    • NEWS FOR HOME BUYERS
      NEWS FOR HOME BUYERS
  • ABOUT ROBIN
    ABOUT ROBIN
    • ABOUT ROBIN
      ABOUT ROBIN
    • CONTACT ME
      CONTACT ME
    • TESTIMONIALS
      TESTIMONIALS
  • BLOG
    BLOG
  • HOME
    HOME
  • PROPERTY SEARCH
    PROPERTY SEARCH
    • DREAM HOME FINDER
      DREAM HOME FINDER
    • BERKELEY HEIGHTS HOMES
      BERKELEY HEIGHTS HOMES
    • DUNELLEN HOMES
      DUNELLEN HOMES
    • FANWOOD HOMES
      FANWOOD HOMES
    • METUCHEN HOMES
      METUCHEN HOMES
    • NORTH PLAINFIELD HOMES
      NORTH PLAINFIELD HOMES
    • NEW PROVIDENCE HOMES
      NEW PROVIDENCE HOMES
    • PISCATAWAY HOMES
      PISCATAWAY HOMES
    • SCOTCH PLAINS HOMES
      SCOTCH PLAINS HOMES
    • SOUTH PLAINFIELD HOMES
      SOUTH PLAINFIELD HOMES
    • WATCHUNG HOMES
      WATCHUNG HOMES
    • WARREN HOMES
      WARREN HOMES
    • SOMERSET HOMES
      SOMERSET HOMES
  • HOME SELLERS
    HOME SELLERS
    • HOME VALUATION REQUEST
      HOME VALUATION REQUEST
    • STAGING YOUR HOME FOR SALE
      STAGING YOUR HOME FOR SALE
    • COMMUNITY INFO
      COMMUNITY INFO
    • LOCAL SERVICE PROVIDERS
      LOCAL SERVICE PROVIDERS
    • NEWS FOR HOME SELLERS
      NEWS FOR HOME SELLERS
  • HOME BUYERS
    HOME BUYERS
    • LUXURY HOMES IN CENTRAL NEW JERSEY
      LUXURY HOMES IN CENTRAL NEW JERSEY
    • CONDOS & TOWNHOUSES
      CONDOS & TOWNHOUSES
    • RETIREMENT HOUSING IN NEW JERSEY
      RETIREMENT HOUSING IN NEW JERSEY
    • MORTGAGE CALCULATOR
      MORTGAGE CALCULATOR
    • LOCAL SERVICE PROVIDERS
      LOCAL SERVICE PROVIDERS
    • NEWS FOR HOME BUYERS
      NEWS FOR HOME BUYERS
  • ABOUT ROBIN
    ABOUT ROBIN
    • ABOUT ROBIN
      ABOUT ROBIN
    • CONTACT ME
      CONTACT ME
    • TESTIMONIALS
      TESTIMONIALS
  • BLOG
    BLOG
To Blog

What Do Supply and Demand Tell Us About Today’s Housing Market?

October 6, 2021
-
First Time Home Buyers, For Buyers, Housing Market Updates, Move-Up Buyers, Pricing
-
Posted by Robin Taylor Roth

What Do Supply and Demand Tell Us About Today’s Housing Market? | Simplifying The Market

There’s a well-known economic theory – the law of supply and demand – that explains what’s happening with prices in the current real estate market. Put simply, when demand for an item is high, prices rise. When the supply of the item increases, prices fall. Of course, when demand is very high and supply is very low, prices can rise significantly.

Understanding the impact both supply and demand have can provide the answers to a few popular questions about today’s housing market:

  • Why are prices rising?
  • Where are prices headed?
  • What does this mean for homebuyers?

Why Are Prices Rising?

According to the latest Home Price Insights report from CoreLogic, home prices have risen 18.1% since this time last year. But what’s driving the increase?

Recent buyer and seller activity data from the National Association of Realtors (NAR) helps answer that question. When we take NAR’s buyer activity data and compare it to the seller traffic during the same timeframe, we can see buyer demand continues to outpace seller activity by a wide margin. In other words, the demand for homes is significantly greater than the current supply that’s available to buy (see maps below):What Do Supply and Demand Tell Us About Today’s Housing Market? | Simplifying The MarketThis combination of low supply and high demand is what’s driving home prices up. Bill McBride, author of the Calculated Risk blog, puts it best, saying:

“By some measures, house prices seem high, but the recent price increases make sense from a supply and demand perspective.”

Where Are Prices Headed?

The supply of homes for sale will greatly affect where prices head over the coming months. Many experts forecast prices will continue to increase, but they’ll likely appreciate at a slower rate.

Buyers hoping to purchase the home of their dreams may see this as welcome news. In this case, perspective is important: a slight moderation of home prices does not mean prices will depreciate or fall. Price increases may occur at a slower pace, but experts still expect them to rise.

Five major entities that closely follow the real estate market forecast home prices will continue appreciating through 2022 (see graph below):What Do Supply and Demand Tell Us About Today’s Housing Market? | Simplifying The Market

What Does This Mean for Homebuyers?

If you’re waiting to enter the market because you’re expecting prices to drop, you may end up paying more in the long run. Even if price increases occur at a slower rate next year, prices are still projected to rise. That means the home of your dreams will likely cost even more in 2022.

Bottom Line

The truth is, high demand and low supply are what’s driving up home prices in today’s housing market. And while prices may increase at a slower pace in the coming months, experts still expect them to rise. If you’re a potential homebuyer, let’s connect today to discuss what that could mean for you if you wait even longer to buy.

PREVIOUS POST
The Main Key To Understanding the Rise in Mortgage Rates
NEXT POST
111,285 Reasons You Should Buy a Home This Year

Robin Taylor Roth

Find Your Dream Home
Price
Beds
Baths
More
Save Search
Get In Touch!

What is My Home Worth?

Related News

Other posts that you should not miss

The Latest Unemployment Rate Fell to 8.4%

September 9, 2020
-
Posted by Robin Taylor Roth

Last Friday, the Bureau for Labor Statistics released their Employment Report for August 2020. The big surprise was that the unemployment …

Read More →
For Buyers, For Sellers, Housing Market Updates
2 MIN READ

Is It Time To Move on to a New Home?

September 20, 2021
-
Posted by Robin Taylor Roth

If you’ve been in your home for longer than five years, you’re not alone. According to recent data from First American, …

Read More →
For Buyers, For Sellers, Move-Up Buyers
3 MIN READ

3 Ways Home Equity Can Have a Major Impact on Your Life

February 17, 2021
-
Posted by Robin Taylor Roth

There have been a lot of headlines reporting on how homeowner equity (the difference between the current market value of your …

Read More →
Distressed Properties, For Buyers, For Sellers, Foreclosures, Rent vs. Buy
3 MIN READ
Contact Me

Robin Taylor Roth
Berkshire Hathaway HomeServices New Jersey Properties
225 Maple Avenue South, South Plainfield, NJ 07080
NJ #0897458

Office : 908.755.5300
Cell : 908.612.4962
Email : robintaylorroth@BHHSNJ.com

Your Contact Info

     

    Agent Login

    © 2022 Robin Taylor Roth ©2017 BHH Affiliates, LLC. An independently owned and operated franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity. Information not verified or guaranteed. If your home is currently listed with a Broker, this is not intended as a solicitation.

    What Do Supply and Demand Tell Us About Today’s Housing Market? - Central New Jersey Real Estate

    Attraction in Dunellen Boro, NJ

    778 Frenchtown Rd
    Powered by Yelp
    The Famous River Hot Dog Man
    The Famous River Hot Dog Man - Milford Yelp Rating 17 reviews
    Rafting/Kayaking, Tubing
    80 Old York Rd
    Powered by Yelp
    Old York Cellars
    Old York Cellars - Ringoes Yelp Rating 212 reviews
    Wineries, Wine Tours
    778 Frenchtown Rd
    Powered by Yelp
    Delaware River Tubing
    Delaware River Tubing - Milford Yelp Rating 227 reviews
    Rafting/Kayaking, Boating, Tubing
    Great Jones St
    Powered by Yelp
    Best Love back Psychic and spiritual healer
    Best Love back Psychic and spiritual healer - New York Yelp Rating 1 reviews
    Psychics, Spiritual Shop
    220 Rte 22 W
    Powered by Yelp
    Crystal Toyota
    Crystal Toyota - Green Brook Township Yelp Rating 107 reviews
    Car Dealers, Oil Change Stations, Auto Parts & Supplies
    Powered by Yelp
    Derrick Joseph Psychic Medium
    Derrick Joseph Psychic Medium - Philadelphia Yelp Rating 28 reviews
    Psychic Mediums, Life Coach
    360 Industrial Loop
    Powered by Yelp
    WeGotLites
    WeGotLites - Staten Island Yelp Rating 46 reviews
    Home Decor, Lighting Fixtures & Equipment
    378 Route 6 & 209 Matamoras Base
    Powered by Yelp
    Kittatinny Canoes
    Kittatinny Canoes - Milford Yelp Rating 77 reviews
    Rafting/Kayaking, Tubing
    1055 US Hwy 1
    Powered by Yelp
    Worldwide Wholesale Floor Coverings
    Worldwide Wholesale Floor Coverings - Edison Yelp Rating 88 reviews
    Carpeting, Hardware Stores
    Powered by Yelp
    The Happy Wanderer Travel Agency
    The Happy Wanderer Travel Agency - Plainfield Yelp Rating 1 reviews
    Travel Agents, Tours
    378 Route 6 & 209
    Powered by Yelp
    Kittatinny Canoes
    Kittatinny Canoes - Milford Yelp Rating 28 reviews
    Campgrounds, Tubing, Rafting/Kayaking
    420 W 1st Ave
    Powered by Yelp
    Granitetop
    Granitetop  - Roselle Yelp Rating 7 reviews
    General Contractors, Kitchen & Bath
    Powered by Yelp
    The Ilka Pinheiro
    The Ilka Pinheiro - New York Yelp Rating 16 reviews
    Reiki, Psychic Mediums, Counseling & Mental Health
    305-B New Dorp Ln
    Powered by Yelp
    Gables New York
    Gables New York - Staten Island Yelp Rating 9 reviews
    Home Decor, Shades & Blinds, Shutters
    45 Main St Ste 202
    Powered by Yelp
    Block Renovation
    Block Renovation - Brooklyn Yelp Rating 76 reviews
    Kitchen & Bath, General Contractors
    70 Commerce St
    Powered by Yelp
    Frank's Express
    Frank's Express - Brooklyn Yelp Rating 123 reviews
    Movers, Packing Services, Packing Supplies