[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f3nq07sxpp3ai0":3,"$ffeh0925h8cuz":47,"$fbwk2pqjjqsc7":51},{"item":4,"previous":35,"next":41},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":14,"isInfographic":15,"categories":16,"isVideo":15,"videoThumbnail":9,"videoSource":9,"publishedAt":33,"updatedAt":34},967,"the-real-reason-home-prices-are-increasing","The Real Reason Home Prices are Increasing","There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient \u003Cem>(data shows this is untrue\u003C\u002Fem>), to those who are concerned that prices are again approaching boom peaks because of \u003Cem>“irrational exuberance”\u003C\u002Fem> \u003Cem>(this is also untrue as prices are not at peak levels when they are adjusted for inflation),\u003C\u002Fem> there seems to be no shortage of opinion.","","blog","https:\u002F\u002Fsimplifyingmedia\u002Fwp-content\u002Fuploads\u002F2017\u002F11\u002F27163030\u002F20171130-Share-STM.jpg","There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient \u003Cem>(data shows this is untrue\u003C\u002Fem>), to those who are concerned that prices are again approaching boom peaks because of \u003Cem>“irrational exuberance”\u003C\u002Fem> \u003Cem>(this is also untrue as prices are not at peak levels when they are adjusted for inflation),\u003C\u002Fem> there seems to be no shortage of opinion.\u003C!--more-->\r\n\r\nHowever, the increase in prices is easily explained by \u003Cstrong>\u003Cem>the theory of supply & demand\u003C\u002Fem>\u003C\u002Fstrong>. Whenever there is a limited supply of an item that is in high demand, prices increase.\r\n\r\nIt is that simple. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything more than seven months will cause prices to depreciate \u003Cem>(see chart 1).\u003C\u002Fem>\r\n\r\n\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2017\u002F11\u002F20171130-STM-ENG1.jpg\">\u003Cimg class=\"alignnone wp-image-36610\" src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2017\u002F11\u002F20171130-STM-ENG1.jpg\" alt=\"The Real Reason Home Prices are Increasing | Simplifying The Market\" width=\"650\" height=\"488\" \u002F>\u003C\u002Fa>\r\n\r\nAccording to the \u003Cstrong>\u003Cem>Existing Home Sales Report\u003C\u002Fem>\u003C\u002Fstrong> from the \u003Cem>National Association of Realtors \u003C\u002Fem>(NAR), the monthly inventory of homes has been below six months for the last four years \u003Cem>(see chart 2).\u003C\u002Fem>\r\n\r\n\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2017\u002F11\u002F20171130-STM-ENG2.jpg\">\u003Cimg class=\"alignnone wp-image-36611\" src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2017\u002F11\u002F20171130-STM-ENG2.jpg\" alt=\"The Real Reason Home Prices are Increasing | Simplifying The Market\" width=\"650\" height=\"488\" \u002F>\u003C\u002Fa>\r\n\u003Ch3>\u003Cstrong>Bottom Line\u003C\u002Fstrong>\u003C\u002Fh3>\r\nIf buyer demand outpaces the current supply of existing homes for sale, prices will continue to appreciate. Nothing nefarious is taking place. It is simply the theory of supply & demand working as it should.","\r\nIf buyer demand outpaces the current supply of existing homes for sale, prices will continue to appreciate. Nothing nefarious is taking place. It is simply the theory of supply & demand working as it should.","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2017\u002F11\u002F20171130-STM-ENG1.jpg",false,[17,21,25,29],{"id":18,"name":19,"slug":20},5,"For Buyers","buyers",{"id":22,"name":23,"slug":24},9,"Home Prices","home-prices",{"id":26,"name":27,"slug":28},11,"First-Time Buyers","first-time-buyers",{"id":30,"name":31,"slug":32},38,"Move-Up","move-up","2017-11-30T10:00:42Z","2017-11-27T17:36:45Z",{"id":36,"slug":37,"title":38,"featuredImage":39,"publishedAt":40,"contentType":10,"isVideo":15},966,"2-charts-that-show-the-truth-about-home-affordability","2 Charts That Show the Truth about Home Affordability","https:\u002F\u002Fsimplifyingmedia\u002Fwp-content\u002Fuploads\u002F2017\u002F11\u002F27160124\u002F20171129-Share-STM.jpg","2017-11-29T10:00:51Z",{"id":42,"slug":43,"title":44,"featuredImage":45,"publishedAt":46,"contentType":10,"isVideo":15},968,"median-days-on-the-market-drops-to-34-infographic","Median Days on the Market Drops to 34! 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