This month's market report from Windermere Real Estate in Tri-Cities illustrates the trends we've been seeing in the residential real estate market. Prices and sales volume are rising while available inventory is shrinking, driven by basic supply and demand dynamics.
Some buyers may wonder whether current market conditions are sustainable or whether we are simply seeing another real estate bubble form. We at Riverwood Homes are encouraged at the quality of buyers that we are seeing now compared to what we witnessed during the "pre-bubble" era. Buyers now are more qualified and less speculative in nature. The increase in sales are a result of pent-up demand from the lean years when people were unwilling or unable to purchase a home, and now the market is catching up. This increase in demand for housing is now driving the supply down to extremely low levels. Fewer than 500 homes - new and used - are listed for sale, while the historical average is well over 1,000 listings at a given time. Given the lack of available supply, it is only natural that homes are selling more quickly and for a higher price than they were when more houses were being listed for sale.
We encourage buyers to assess market conditions on their own but not to be too alarmed that prices have risen. It is the natural result of market-driven supply and demand economics, backed up by qualified, owner-occupied buyers.