How does Supply and Demand affect the property values?
If you are selling or buying property, you’ve probably heard the phrase that it’s all about location, location, location, and to a large degree that’s spot on.
Here is the one of several other factors to consider:
Supply & Demand
Perhaps one of the biggest factors, the number of properties up for sale, and the number of buyers competing for them has a major effect on the value of a home. Generally, if there are more buyers than sellers, values will go up. If there are more sellers than buyers, the values will come down.
Due to the current economic situation, today we are in what is called a buyers market and prices therefore are likely to fall. By how much it is not certain. Some are saying 5% and some up to 21%. A lot will depend on demand which is still high and availability of financing for buyers. Last year the market rose quite considerably so property owners have benefited form that. So if you are considering selling to take advantage of those price rises now might be a good time before the market drops.
If you are thinking of selling you are welcome to get in touch to discuss the best ways to still sell at the right price – or the price you want.
Mau Investments – Property Solutions made easy