The price of most any product is determined by the Supply and Demand for that product/item in the market place.
Every month, The National Association of REALTORS (NAR) surveys over 50,000 real estate practitioners regarding “their expectations for home sales, prices and market conditions”.
The resulting data obtained by this monthly survey is then compiled into a report called REALTORS Confidence Index. The most recent December 2016 edition helps shed some light on the interdependent relationship between Seller Traffic (supply) and Buyer Traffic (demand).

Buyer Demand

The map below was created by asking REALTORS® participating in the survey: “How would you rate buyer traffic in your area?”

As you will note, the darker the blue, the stronger the demand was for homes in that particular state. Only six states were deemed to have a “weak” demand level.

Seller Supply

In order to get an indication of how the Supply side of the chain is performing, REALTORS® participating in the survey were asked: “How would you rate seller traffic in your area?”
As noted on the map below, the majority of the US has quite “weak” Seller Traffic.  This of course indicates that there is a distinct home Supply shortage.
Therefore we are currently faced with having far fewer homes on the market than is needed to satisfy Buyer Demand.

The Takeaway

From the maps above, it is not difficult to determine why prices have been appreciating in most areas of the US.
Until the supply of homes on the market comes in line with Buyer Demand, prices will likely continue to increase.

If you have been debating whether or not to list your house for sale, call or text me at 727.755.3434.  I would be glad to chat with you about creating a personalized “make-ready for market list”, so that you can capitalize on the current Buyer Demand in today’s market.
** Please note that data and statistics quoted above are national.  Always consult a competent real estate practitioner familiar with your local market **