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Friday, March 24, 2017

How Low Supply & High Demand Impacts the Real Estate Market


Some Highlights:

  • The concept of Supply & Demand is a simple one. The best time to sell something is when the supply of that item is low & the demand for that item is high!
  • Anything under a 6-month supply is a Seller’s Market!
  • There has not been a 6-months inventory supply since August 2012!
  • Buyer Demand continues to outpace Seller Supply!

In Our Local Market:

 In the Puyallup/South Hill/Graham/Fredrickson area, when I factor in the homes that have PENDING sales on them, we're down to about 3 weeks of inventory. The Absorption Rate (how many homes have sold compared to how many listed for sale) is 118.5% when the PENDING sales are factored in.

Key Take-Away:

It is the perfect time to sell your nice home and buy your Dream Home (upper-end homes are in less demand than Mid-Level and Entry-level housing.)  Entry-Level homes (under $300K) are in the highest demand and are where you will see the greatest gains in equity.

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