Tag Archives: supply and demand

How Supply and Demand Impacts Real Estate Home Values

Supply and Demand in Today’s Market

The Impact of Supply and Demand on Housing Prices in Today's Real Esate Market

Some Highlights:

  • The concept of supply & demand is a simple one. The best time to sell something is when the supply of that item is low & the demand for that item is high!
  • Anything under a 6-month supply is a seller’s market!
  • Nationally, there has not been a 6-months inventory supply since August 2012!
  • Inventory levels differ depending on the area of the country and price range, so let’s get together to discuss the exact market conditions in our area.

Thinking of selling your home? It could be worth more than you think! Contact Ann Arbor’s premier Real Estate team at The Bouma Group at 734-761-3060 or email info@bouma.com and get a market analysis for your home and find out the next steps in getting it sold for top dollar!

Ann Arbor Real Estate – A Study in Human Nature!

One of the interesting phenomenons in today’s Ann Arbor real estate market is the variation in sales prices.   In the same neighborhoods, you will see one home sell way above the average, while most of the homes are selling for the average price or below.   I’ve observed this several times, and really started to analyze what was happening, and in the process I learned a lot about human nature.

Distressed Ann Arbor Home Sellers!

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Understanding Washtenaw County Real Estate Supply and Demand

Pricing Your Ann Arbor Home Ahead of the Market

In the current Ann Arbor real estate market it is so important that your home for sale is priced ahead of the market. This is a very difficult concept for many Washtenaw County home sellers to understand. I’ve always prided myself in providing sellers with data and market stats that would make an economics professor proud and I’ve always done my homework when it comes to preparing the market comparables – both active and solds. What I started to notice was in spite of all my market stats and perfect comparables, many sellers were having a difficult time comprehending how supply and demand can greatly affect the price they will get for their home.

To help them understand supply and demand I share the following story with them:

Three attorneys are getting ready to take their Bar exam. Anyone who has had a friend take the Bar exam, knows how important this exam is. Students will often study many months to prepare for this exam, so you don’t want to miss the opportunity to pass the test. As the 3 law students are ready to enter the exam room, they all realize that they forgot to bring a pen. In total panic, they start asking around if anyone has an extra pen. One of the ushers has an extra pen, so he offers it to the first law student for $1. Immediately the second law student offers $5 for the pen. In desperation, the 3rd law student offers $25 for the pen, and he walks into the exam room, and the other 2 law students are out of luck. Continue reading

Downsizing Your Ann Arbor Home is the New Mantra

Over the past several months, we’ve been receiving more and more calls from home owners wanting to shrink their living standards, including their Ann Arbor homes. Of course in the supply and demand scenario, if there are more people wanting to downsize than people who want to upsize, you run into a situation where the supply exceeds the demand and that places a lot of pressure on home prices.

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