Real Estate Economics 101: Housing Inventories Down in Durham

One of the most basic concepts of economics is Supply and Demand: over supply means lower prices, under supply means higher prices.  While I am not an economist and do not have a crystal ball, here are some facts to consider.

Inventory is low.  The number of available homes in March 2011 was 69 and March 2012 was 64.  As of today, there are only 36 active listings available in Durham.  Inventory levels are down 43.75% compared to same time last year.

So the big question, will the median sales price increase?  If the first 2 months of this year are indicators, then yes.  In 2012 year to date, the median price was down 22%. So far year to date through February, median price in Durham has improved and we are in the “+” column.

If you like to analyze information and create your own prediction, local housing data is a perfect place.  My bets are on a great Spring market!  If you’d like a complimentary market analysis, please call 860-918-4580.