{"id":2688,"date":"2018-10-22T10:00:25","date_gmt":"2018-10-22T10:00:25","guid":{"rendered":"https:\/\/thezakariagroup.com\/will-home-prices-continue-to-increase\/"},"modified":"2018-10-22T10:00:25","modified_gmt":"2018-10-22T10:00:25","slug":"will-home-prices-continue-to-increase","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/will-home-prices-continue-to-increase\/","title":{"rendered":"Will Home Prices Continue to Increase?"},"content":{"rendered":"
\n

\"Will<\/p>\n

There are many unsubstantiated theories about what is happening with home prices. From those who are worried that prices are falling<\/a> (data shows this is untrue),<\/em> to those who are concerned that prices are again approaching\u00a0boom<\/a>\u00a0peaks 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\u00a0explained<\/a>\u00a0by\u00a0the theory of supply & demand.<\/em><\/strong>\u00a0Whenever there is a limited supply of an item that is in high demand, prices increase. 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 greater than seven months will cause prices to depreciate\u00a0(see chart below).<\/em><\/p>\n

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

According to the\u00a0Existing Home Sales Report<\/a><\/em> 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

\"Will<\/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 about what is happening with home prices. From those who are worried that prices are falling (data shows this is untrue), to those who are concerned that prices are again approaching\u00a0boom\u00a0peaks because of\u00a0\u201cirrational exuberance\u201d\u00a0(this is also untrue as prices are not at peak levels when they are adjusted for inflation),\u00a0there […]<\/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":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[110,98,99,100,102,101,108],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"\nWill Home Prices Continue to Increase? - 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\/will-home-prices-continue-to-increase\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Will Home Prices Continue to Increase? - The Zakaria Group\" \/>\n<meta property=\"og:description\" content=\"There are many unsubstantiated theories about what is happening with home prices. From those who are worried that prices are falling (data shows this is untrue), to those who are concerned that prices are again approaching\u00a0boom\u00a0peaks because of\u00a0\u201cirrational exuberance\u201d\u00a0(this is also untrue as prices are not at peak levels when they are adjusted for inflation),\u00a0there […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thezakariagroup.com\/will-home-prices-continue-to-increase\/\" \/>\n<meta property=\"og:site_name\" content=\"The Zakaria Group\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/thezakariagroup\/\" \/>\n<meta property=\"article:published_time\" content=\"2018-10-22T10:00:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2018\/10\/04155913\/20181022-Share-STM.jpg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thezakariagroup.com\/will-home-prices-continue-to-increase\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thezakariagroup.com\/will-home-prices-continue-to-increase\/\"},\"author\":{\"name\":\"\",\"@id\":\"https:\/\/thezakariagroup.com\/#\/schema\/person\/3faf57a8142a13b0b75bddafdfe7ec5d\"},\"headline\":\"Will Home Prices Continue to Increase?\",\"datePublished\":\"2018-10-22T10:00:25+00:00\",\"dateModified\":\"2018-10-22T10:00:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/thezakariagroup.com\/will-home-prices-continue-to-increase\/\"},\"wordCount\":227,\"publisher\":{\"@id\":\"https:\/\/thezakariagroup.com\/#organization\"},\"articleSection\":[\"Buying Myths\",\"First Time Home Buyers\",\"For Buyers\",\"For Sellers\",\"Housing Market Updates\",\"Move-Up Buyers\",\"Pricing\"],\"inLanguage\":\"en\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/thezakariagroup.com\/will-home-prices-continue-to-increase\/\",\"url\":\"https:\/\/thezakariagroup.com\/will-home-prices-continue-to-increase\/\",\"name\":\"Will Home Prices Continue to Increase? 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