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      Naomi Selick | Douglas Elliman of California

      150 El Camino Dr., Beverly Hills, CA 90212

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      The Real Reason Home Prices are Increasing

      There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that...

      • Wendy Herndon
      • February 8th, 2018
      • 2 min read
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      There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient (data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of “irrational exuberance”
      (this is also untrue as prices are not at peak levels when they are adjusted for inflation), there seems to be no shortage of opinion.

      However, the increase in prices is easily explained by the theory of supply & demand. Whenever 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 more than seven months will cause prices to depreciate (see chart 1).

      According to the Existing Home Sales Report from the National Association of Realtors (NAR), the monthly inventory of homes has been below six months for the last four years (see chart 2).

      Bottom Line

      If buyer demand outpaces 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. Questions? Give me a call or text at 213-280-9120. I'm here to help!

       

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      About the author

      Wendy Herndon

      I am - above all - a Mother & Partner to 2 very spectacular men.  I am an animal enthusiast - hard to look a dog or puppy in the face and not want to scoop them up and smuggle them home.  I am a humanitarian - it pains me deeply to see profound suffering, loneliness, and need - I support several local organizations who do what they can to help.  I am a student - always eager to learn, it’s never too late, and I’m never too smart not to benefit by studying the techniques and appreciating the gifts of others. I am very happy to be a ‘Client Concierge’ - Onboarding Specialist - working with brand new Curaytor clients.  Blazing a new trail is sometimes confusing and intimidating, & being that person who gets to welcome new clients onboard and guide them down a path to ultimate success is exciting & rewarding for me.  I KNOW what lies at the end of that road… & I love seeing their enthusiasm & excitement when they reach that end.Where do you call home?Home for me is Bradenton on Florida’s Glorious Gulf Coast What do you do when you’re not working?When I am not working… I love DIY Home Projects, ♥ Flea Market Flip on HGTV - Love to Swim - cool water and hot sun, great combo - Drink, Eat, & Play with Great Friends - Huddle close & do absolutely nothing with family… whenever I get the chance.What do you love about your job? I ♥ working for a Company & with an exceptional team - that supports me with a culture & a client service mentality that I am proud to be a part of… not to be outdone by the absolutely EXCELLENT clients that I ♥ spending time with each & every day!What’s your favorite TV show?If I had to pick one, gee that’s tough, but overall - I would have to say BONES.Favorite movie?ChinatownFavorite food?Thai - Vegetables… love veggies!

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      Naomi Selick | Douglas Elliman of California

      A Rare Combination Of Passion & Experience!

      Naomi Selick Realtor® | Douglas Elliman of California | CA DRE #01947727

      150 El Camino Dr. Beverly Hills, CA 90212 | O 310.595.3888 | [email protected]

      Naomi Selick Realtor® | Douglas Elliman of California | CA DRE #01947727

      150 El Camino Dr. Beverly Hills, CA 90212 | O 310.595.3888 | [email protected]

      213-280-9120
      [email protected]

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