So if you are out in the local real estate market in Jackson County right now…and say shopping for a house under $200,000. You may have notice something.
There are multiple offers on almost every house.
Why is this?
Well, it comes down to that basic economic principle of Supply and Demand.
Currently in Jackson County, there are 376 houses for sale under $200k. That is about one third of all of the homes currently available for sale. In an area of a hundred thousand people, 376 homes is a very small number.
So that is the supply….pretty darn low.
But you may wonder…in this economic environment, what is the demand for people purchasing homes? Well, in that same price range, the number of homes under contract currently is 371. Or in other words, for every house currently for sale, there is one house under contract. In addition, in the last month, 153 homes sold.
So demand is high.
If no other homes came on the market in that range…in 2 months or less the supply would be exhausted.
What is normal in a healthy real estate market for the ratio of supply vs demand?
Many experts say a 6 month supply.
And that is why there are so many multiple offers.