{"id":2301,"date":"2018-04-30T10:00:29","date_gmt":"2018-04-30T10:00:29","guid":{"rendered":"https:\/\/thezakariagroup.com\/why-home-prices-are-increasing\/"},"modified":"2018-04-30T10:00:29","modified_gmt":"2018-04-30T10:00:29","slug":"why-home-prices-are-increasing","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/why-home-prices-are-increasing\/","title":{"rendered":"Why Home Prices Are Increasing"},"content":{"rendered":"
\n

\"Why<\/p>\n

There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient<\/a>\u00a0(data shows this is untrue)<\/em>, to those who are concerned that prices are again approaching boom<\/a> peaks because of\u00a0\u201cirrational exuberance\u201d\u00a0(this is also untrue as prices are not at peak levels when they are adjusted for inflation)<\/em>,\u00a0there seems to be no shortage of opinion.<\/span><\/p>\n

However, the increase in prices is easily explained<\/a> by\u00a0the theory of supply & demand.<\/em><\/strong> Whenever there is a limited supply of an item that is in high demand, prices increase.<\/p>\n

It is that simple. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything more than seven months will cause prices to depreciate\u00a0(see chart below).<\/em><\/p>\n

\"Why<\/a><\/p>\n

According to the\u00a0Existing Home Sales Report<\/em>\u00a0<\/a>from the\u00a0National Association of Realtors<\/em>\u00a0(NAR), the monthly inventory of homes for sale has been below six months for the last five years\u00a0(see chart below).<\/em><\/p>\n

\"Why<\/a><\/p>\n

Bottom Line<\/strong><\/h3>\n

If buyer demand continues to outpace the current supply of existing homes for sale, prices will continue to appreciate. Nothing nefarious is taking place. It is simply the theory of supply & demand working as it should.<\/p>\n<\/div>\n

Powered by WPeMatico<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient\u00a0(data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of\u00a0\u201cirrational exuberance\u201d\u00a0(this is also untrue as prices are not at peak […]<\/p>\n","protected":false},"author":101010,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[110,98,99,102,101,108],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"\nWhy Home Prices Are Increasing - The Zakaria Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thezakariagroup.com\/why-home-prices-are-increasing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Home Prices Are Increasing - The Zakaria Group\" \/>\n<meta property=\"og:description\" content=\"There are many unsubstantiated theories as to why home values are continuing to increase. 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