Inventory Is Low
Across the investor market in real estate purchases, inventory is low. It is what we call a sellers market. Everyone has heard that term, but the impact of a sellers market and what that actually means holds a lot of weight. A sellers market means that sellers hold the power in the decision making on a properties because there is more demand than supply. When the market gets into this position, like nature, it corrects itself. Sometimes it does it very quickly and then you have a huge shift from too much demand to too much supply. Sometimes it is slowly and it finds a balancing point between the two which eventually has to tip again to one direction or the other. When there is too much supply, eventually prices will rise to a point that becomes unsustainable as people will simply not buy at those numbers or the people that are buying at those numbers should not be able to. The market is like nature because it is driven by human minds and our emotions that influence purchasing and economic liquidity seem to have their own cyclical movements. There is not much any single person can do to change it, but it certainly helps to be aware of it.
Ian Walsh
215.839.3271
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