Supply – In Real Estate, supply is simply the quantity and type of houses available to buy in varying price ranges.
Many variables influence supply.
- Is there an adequate amount of land?
- Skilled labor?
- Can construction produce timely products?
- Can buyers get financing?
Demand – The desire and ability to purchase in a given market at a given time.
Like supply, many variables are at work influencing demand.
- Is the price right?
- Is there competition due to population size?
- Adequate income of consumers?
- And my favorite, the fickle taste of consumers who spend hours earning their real estate education from HGTV (I have nothing against HGTV – I love it too. But would you even think about wanting a farm house sink with a subway tile backsplash if our favorite shows didn’t suggest it?).
Now, basic economics.
If you’re anything like me, your sole interaction with economics was in high school with an old salty teacher ready for retirement. Reaching back to our teenage years, we remember that Supply and Demand are inversely related – when one goes up, the other goes down.
- So, how do you interpret the market and become economically saavy? What are market indicators?
Humor me for a bit longer as I go over some market statistics with you. Did you know that the median price of houses in Jacksonville increased 8.8% over the course of 2016? Did you also know that the number of houses for sale this year decreased 20%?
Ok, so what…
Low Supply + Increasing Prices = SELLER’S MARKET
In Jacksonville, right now, there is no better position to be in than owning a house. This is a unique seller’s market due to the aforementioned market statistics and the ability for consumers to get financing at a (very) reasonable interest rate.
Bottom line, if you’re thinking about selling, consider taking advantage of the current market.
I know what you’re thinking. If the market is so great, why don’t I sell my house myself? Why do I need a REALTOR®?
One reason (and in my humble opinion, the best) is to SAVE MONEY.
A REALTOR® has special access to market statistics and understands how to accurately price your house.
The ultimate irony of a For Sale By Owner (FSBO) is this - By wanting to save the 6% in Agent Commission by not hiring one, sellers actually end up LOSING much more, missing out on the expertise REALTORs® provide.
Speaking of 6%…I have to put in a plug about Homes for Heroes®. If you are one of these:
Military | Police | Fire Fighter | Teacher | Medical Professional
25% OF OUR COMMISSION BACK TO YOU!
Service deserves its rewards! We want to say “THANK YOU” for your sacrifice to our country and community.
So what are you waiting for? Make 2017 YOUR year! List your house with us. Who knows what adventures lie ahead in your next chapter!