Blog > How Does Supply and Demand Affect Housing Prices?
Supply and demand are the foundation of real estate pricing. When there are more buyers than available homes, competition increases and prices rise. Conversely, when housing supply grows faster than buyer demand—often due to overbuilding or higher mortgage rates—prices tend to level off or decline. Real estate is hyper-local: even when the national market cools, certain neighborhoods with limited inventory and strong desirability can continue to appreciate. Over the long term, steady demand fueled by job growth and population shifts usually supports healthy price growth.
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