How Supply and Demand Impacts Real Estate Values

The price of any item is determined by the supply of that item, as well as the demand for that item in its market. The same is true in real estate. As the inventory of homes available for sale shrinks, and the demand that buyers have for those homes continues to grow, prices increase.

As you can see in the graph below, the Columbia real estate market is slowly recovering form the drop in available homes for sale between April and June. July inventory is steady climbing back to a 6 months supply.

Bottom Line:

Let’s get together to discuss the supply and demand of homes in our market!