Why Home Prices are Increasing

There are a lot of theories as to why home values continue to increase.

Some of these theories include lending standards are becoming too lenient, and prices are approaching boom peaks because of irrational exuberance.

There are many opinions about the increase. But the theory of supply and demand can explain it better.

The supply and demand theory simply states that whenever there’s a limited supply of a high-demand item, its price increases.

The real estate industry is not an exception.

In the chart below, the values of homes that are less than six months in most housing markets will appreciate while those that are more than seven months will depreciate.


The chart below shows the trend in the last four years. The monthly availability of homes in the market has been below six months according to the recent report from the National Association of Realtors (NAR).


Prices of homes will continue to appreciate if buyer demand is more than the current supply of existing homes for sale.

At Burgess Group Realty LLC, we help our clients find the best deals in the housing market.

We can help you buy sooner rather than later so that you can have much savings. Let’s meet up so we can help you buy your dream home and long-term investment.

CALL Catherine at 303.506.5669.

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