Will home values continue to appreciate throughout 2018? The answer is simple: YES! – as long as there are more purchasers in the market than there are available homes for them to buy. This is known as the theory of “supply and demand,” which is defined as: “The amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.”
When demand exceeds supply, prices go up. Every month this year, demand (buyer traffic) has increased as compared to last year and for the first five months of 2018, supply (the number of available listings) had decreased as compared to last year.
However, a recent report by the National Association of Realtors (NAR) revealed the first year-over-year increase in supply in three years.
The increase in the June numbers doesn’t mean that prices won’t continue to appreciate. In that same report, Lawrence Yun, NAR’s Chief Economist, explained: “It’s important to note that despite the modest year-over-year rise in inventory, the current level is far from what’s needed to satisfy demand levels. Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up.”
While we are headed towards a balanced market in the Seattle and Eastside areas, after many years of a hot seller’s market, there are many buyers still looking to buy. Savvy sellers will make sure to optimize the market by working with an experienced agent who is an expert at marketing and negotiating and will use top-tier strategies to attract the right buyer, including professional staging, HD photography and target marketing.
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