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What are the most significant factors/indices in efforts to determine supply and demand for real estate?
(UT)

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gwinget posted on 26 Dec 2009 08:15 AM

 

What are the most significant factors/indices in efforts to determine supply and demand for real estate?

Thanks

 

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Way too many total factors to list, but present supply can be estimated by adding total listed properties on MLS + FSBO properties + REO properties.

Future supply is the (total listed properties on the MLS + FSBO properties + REO properties) * the present absorption rate + the number of residential building permits filled during the last 3 months.

Demand on the other hand is much harder to quantify. Essentially, almost all Americans are would be homeowners. The combination of available credit and home prices determine the true number of people in the market at a given time.

Grant Hammond, Broker, ABR

Grant is a Nashville real estate expert & 27 award winning Broker.

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The simplest way to judge the market is the local absorbtion rate. If the rate in your area is over 5 months it is still a buyers market. If the rate falls below 5 months it becomes a sellers market and your prices will begin to stabilize

Joseph Smidt

Weichert Realty

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