Class is now in session: Economics 101

If you’re wondering why the market is the way it is, I’m going to give you a quick lesson in terms that make sense!

There are more buyers looking for homes than there are houses for sale.

The demand (number of buyers looking for homes) is high but the supply (number of homes for sale) is very limited.

Think of it like this: You have 4 tickets to a playoff basketball game.

The game is sold out (there aren’t any tickets available).

You have 10 people in line to buy the tickets you have.

That means the price for these tickets increases because the buyers are willing to pay more in order to get them and attend the game. They are competing with each other.

Your tickets are the only option for these fans who want to see the game. You are in the driver’s seat as the ticket holder.

That’s what the real estate market is like.

The sellers have the leverage because their home is in such high demand. The demand drives up the value of the home.

That’s the current real estate market in a nutshell.

However, that doesn’t mean you can list your home for any price you want. You have to be realistic, strategic and prep your home for the market if you hope to see that kind of demand for you home too!

What questions do you have about the current real estate market?