Real estate is all about supply vs. demand.
When there are more buyers than sellers, prices tend to rise.
Likewise, when there are more sellers than buyers, prices tend to decline.
The Boise real estate market is currently in what we call a “seller’s market”; meaning that sellers have greater control than buyers.
Before you get too excited, please note that this scenario exists mostly in the under-$200,000 end of our market that comprises roughly 60% of all sales.
The primary reason for this “seller’s market” is a serious lack of listing inventory in the lower price ranges.
And, one big reason for that lack of listing inventory is the fact that about 1 in 4 potential sellers remain “underwater” and unable to sell without bringing money to the closing table.
Which, in turn, results in the unintended consequence of negative equity actually contributing to higher home prices.
I wonder how long this phenomenon can be sustained?
Inside Real Estate Print This Post