Wednesday, June 16, 2021 / by Flr Team
In today’s housing market, prices are driven by the simple concept of supply and demand. The price of any item is determined by how many items are available compared to how many people actually want to buy them.
As a result, the strong year-over-year home price appreciation is simple to explain. The demand for housing is up while the supply of homes for sale are still at a historic low causing home price appreciation to continue to accelerate.
May 2021 proved that even with this exhausting and competitive buyers market, there is simply no slowing down. Thirty-nine of the fifty states saw increases in inventory over the last month. This may be evidence that homeowners who were afraid to let buyers in their homes during the pandemic are now putting their homes up for sale.
In addition, many buyers are offering over-asking price, and adjusting their search by 50k-100k to accommodate their bidding potential. The same people are concerned by the rapid price appreciation we’ve experienced over the last year. Going forward, if the number of homes for sale better aligns with demand, price appreciation will moderate to more historical levels.
Having said that, whether you are looking to sell or buy, our team at Florida Lifestyle Realty is here to help. You can guarantee that you have an experienced and trusted partner by your side during the entire process. Contact us today and we can chat about your options.
Florida Lifestyle Realty