Wednesday, November 9, 2022 / by Nick Waldner
Explaining how the supply of inventory affects your home’s value
How does the monthly supply of inventory affect the value of your home? Let's go over that today so we understand it.
Things have changed in the market over the last two years. If you look back earlier this year in January to April, we had less supply than we did the year or two years prior in each of those months. But come May, that was the first month where we had more supply than we did at the same time last year. You're now seeing that trend continue in June and July. Both had more inventory than in 2021 and 2020.
So you're starting to see inventory tick up, and you think simple economics would tell you that more supply means the prices will begin going down, but here's the thing: Because of the market crash from 2005-2007, we stopped building while America continued growing its families. We had more households than we did actual new construction. We have this supply and demand that has thrown everything off.
Yes, the supply of homes is going up over the last couple of months, but it doesn't mean it's going to affect the home prices as we saw during the market crash. This is a much different market; you need to understand the developments and how they're going.
If you give me or my team a call or send us an email, I'd be happy to go over exactly what's going on in this market for you and what that means to your home’s value. I look forward to hearing from you!