Quote:
Originally Posted by BrianL99
I think it's perfectly clear how it will play out, it's the same basic premises that has defined Economics for centuries, Supply & Demand.
The real estate folks are great at quoting and posting all this noise about how pricing has not changed much over the last year, but where their reasoning falls apart, is they're not looking at "Days Supply", which is really the number that matters. When I bought in TV 4 years ago, I think the Days Supply was in the 30 day range ... now it's probably in the 90 day range.
Homes don't go on the market for "fun" ... they go on the market because people need to sell for one reason or another. The vast majority of homes on the market will eventually sell, for that very reason ... and prices will drop until they do.
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You correctly defined a "healthy real estate market".
"The key local indicator is housing inventory, which is a measure of supply and demand.
For a market to be considered healthy, the inventory should stand at 4-6 months. That means it would take between 4 and 6 months to sell every house on the market. "
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