Perhaps you learned about the relational concept of supply and demand in high school or college. For the most part, it is an inverse relationship, meaning when one side gains the other side loses. This model is seen in everyday economic decisions to what clothes are on sale to what food are in supply. It is the rule of supply and demand that balance out the economy.
We’ve noted the continued trend of a spike in home purchases in the state of Massachusetts, but what if the supply stops coming into the market?
In the last month of January, there was a reported increase of 3.7% in home sales in the state. But many people are still holding on to their homes, so the inventory levels have yet to catch up with demand. This could potentially cause a shortage for the spring season, when the housing market is most active. The uptick in demand is of course, great for sellers because they can increase their asking price from the previous estimations from the past months.
Experts agree that foreclosed homes won’t add much supply here in Boston, but it is safe to say that come spring, there should be a bit more activity in the seller’s market. It’s still too early to tell what the situation will be. But one thing is for sure, that this will be a season of change.
And if you’re feeling the need for change, let us at Bushari Group Real Estate help you with your buying or selling needs. Contact us anytime, and we’ll be glad to help.
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