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    House Prices: Simply a Matter of Supply & Demand

    Why are home prices still rising? It is a simple answer. There are more purchasers in the market right now than there are available homes for them to buy. This is an example of the theory of “supply and demand” which is defined as:

    “the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.”

    When demand exceeds supply, prices go up. This is currently happening in the residential real estate market.

    Here are the numbers for supply and demand as compared to last year for the last three months (March numbers are not yet available):

    House Prices: Simply a Matter of Supply & Demand | MyKCM

    In each of the last three months, demand (buyer traffic) has increased as compared to last year while supply (number of available listings) has decreased. If this situation persists, home values will continue to increase.

    Bottom Line

    The reason home prices are still rising is because there are many purchasers looking to buy, but very few homeowners ready to sell. This imbalance is the reason prices will remain on the uptick.

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    Danny Cheung

    I spent almost thirty (30) years with the Department of Defense in hardware/software design, development, operations, maintenance, and program manager before joining the Group in a full-time capacity. I am thrilled to put my years of experience as an Electronics Engineer and Program Manager to assist and lead our Real Estate Group to the next level. I am committed to establishing the tools and resources necessary for our team members to work more seamlessly and effectively, thus ensuring our clients' satisfaction. My wife and I have two daughters and a dog (he’s more like our son). I enjoy traveling and watching sports, especially football…Go Skins!

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