Marin Real Estate Market Lacking Equilibrium

PRICE THEORY : MARKET EQUILIBRIUm

 

 Market Equilibrium happens when both buyers and sellers come to an agreement to exchange goods and services. When this occurs,  the price does not increase or decrease. In other words, Market Equilibrium is the condition that exists when a state of balance occurs between market demand and market supply.





The Graph shows that supply and demand agrees to produce a certain amount of product for a given price.
 



 
Marin Real Estate Market Lacking Equilibrium

Today's housing climate features low interest rates, tight inventory and excess demand that is making multiple offer situations common again.

For the past several years during the downward cycle in the housing market, we have seen an oversupply of homes and very little demand at price levels that were elevated but dropping. Even through 2011, demand continued to lag despite low housing prices and absurdly low interest rates. But fundamental economics finally kicked in and the market has changed due to a scarcity of inventory.

 

 

If you are a home buyer wanting take advantage of today’s low prices and interest rates here are a few tips that will help you succeed. First and foremost pay close attention to the market and when a home you like comes on the market down wait and watch, or the opportunity will surely pass you by. Get comfortable with the idea that if there is more than one offer you will likely have to pay more than the asking price for the property.

 

 

 

( SOURCE: http://sanrafael.patch.com/groups/andy-falks-blog/p/bp--featured-blog-marin-real-estate-market-lacking-equilibrium )

Written By : Ng Pui Yan 0313660