Why home prices will go up in 2015

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I have been asked more than once recently when the supply of homes for sale will increase and return to more normal levels.

My answer is that the improving economy, increased job security and higher incomes, unexpectedly low mortgage rates, and the realisation that real estate has not appreciated as much as other asset classes all combine to create a market with more buyers than sellers.

And we know what happens when demand exceeds supply – prices go up. And higher prices are what I think it will take to get more inventory onto the market.

 Tomorrow I shall publish an updated inventory position as of March 1. Yes tomorrow is March – maybe there is hope that this “wicked winter weather” will ease. I even see a temperature beginning with a 4 in the forecast for next week.

If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com.

Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated

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