Supply and demand -- most of us know that supply and demand are the basis of economic principles we learn in Economics 101! The more supply of homes, the lower the price of homes. The lower the supply, the higher the price. And real estate is NO exception. Anytime we have less than six months of housing inventory, it's a seller's market and we can expect home prices to increase.
Did you know that nationally and in the Charlotte, North Carolina region we have not seen a six month supply of homes since August 2012 -- that's 5 years!
The Charlotte, North Carolina region has seen a precipitous drop in housing inventory since August 2012, when we began the year with 8.8 months of inventory and were clearly a buyer's market. Since August 2012 our housing inventory has dropped each year and home prices have increased each year, as well.
- August 2012: 6.9 months of housing inventory (down from 11.8 months in August 2011). In one year, the Charlotte housing market went from very much a buyer's market to a neutral market. By August 2012, the average price per home sold increased 3.5% for the year-to-date.
- August 2013: 5.4 months of housing inventory putting Charlotte into a seller's market in just one year. By August 2013, the average price per home sold increased 6.1% for the year-to-date.
- August 2014: 5.2 months of housing inventory with the average price per home sold by August 2014 increasing 4.2% for the year-to-date.
- August 2015: 3.8 months of housing inventory with the average price per home sold by August 2015 increasing 4.7% for the year-to-date.
- August 2016: 3.0 months of housing inventory with the average price per home sold by August 2016 increasing 5.9% for the yearto-date.
- August 2017: 2.6 months of housing inventory with the average price per home sold by August 2017 increasing 5.9% year-to-date.
Is it any wonder that so many Charlotte region home buyers are suffering from sticker shock these days? But so long as our inventory remains low and demand continues to outstrip supply, Charlotte buyers cannot expect home prices to do much but continue to increase.
The infographic below clearly illustrates just how supply of homes for sale and the demand for homes for sale impact housing prices whether you are in the Charlotte region or another part of the USA.
Contact Carolinas Realty Partners if we can answer any questions you might have about the Charlotte metro housing market or about what buying a home listing your home for sale might entail.
If you are considering selling or purchasing a home in the Charlotte metro area, I would love an opportunity to earn your business, exceed your expectations, and to prove to you that:
Originally posted at: http://activerain.com/blogsview/5112352/how-charlotte--nc-s-home-prices-are-impacted-by-supply-and-demand