New Real-Estate Math: Half a Million More Sellers Than Buyers

New listings haven’t been enough to jolt the housing market out of its slumber

By Nicole Friedman of The WSJ. Excerpts:

"The U.S. housing market had nearly a half million more sellers than buyers in April, the biggest such gap on record in seasonally adjusted data going back to 2013"

"More sellers are cutting prices or offering concessions such as paying for buyers’ closing costs."

"supply is rising because some sellers have experienced life events that require them to move, like a job relocation or having a baby. Others are unloading investment properties because their costs are rising, or they are worried that home prices will fall and want to sell before that happens" [Expectation of future price is a shift factor for both supply and demand-when sellers expect lower prices in the near future the supply today increases-maybe demand fell because buyers might be waiting for lower prices]

"Existing-home sales in April fell for the second consecutive month, notching the slowest sales pace for any April since 2009." [If quantity has fallen and supply has increased then that means that demand fell more than supply increased]

"The mismatch between buyers and sellers is a sign that home prices could decline slightly on a national basis later this year, said Chen Zhao, Redfin’s head of economics research."

Other posts on supply and demand shifts:

Buy Now Before Tariffs Hit, Retailers Are Telling Shoppers: Businesses play up fears of a price hit in marketing goods from furniture to fishing rods (2024) 

Expectation of future price in the news (2024)

Record Cocoa Prices Are Making Sweet Cravings Expensive (2024)

A New Age of Materials Is Dawning, for Everything From Smartphones to Missiles (2024)

Orange Juice Prices Are at Record Highs—and Could Keep Climbing (article illustrates supply and demand principles) (2023)

Supply, demand and the price of bacon (2023)

New cars, used cars and substitutes (2023)

This post is featured in an economics textbook (2023)

Is the TV show Yellowstone changing consumer's taste in clothing? (2023)

Do Wages Drive Prices, or Vice Versa? The Answer Matters for Interest Rates (2022)

Home sale prices, apartment demand and the price of subsitutes (2022)

How Supply and Demand Explain Higher Wages for Teen Babysitters (2022)

Are Expectations Helping To Raise The Price Of Lithium? (2021)

Farmers might be reducing supply of corn now in expectation of higher prices this fall (2019)

Grocery stores try to alter the tastes and preferences of men (2018)

Supply Means Producing A Good And Customers Being Able To Purchase It (2018)

How Supply And Demand Have Affected Beef Prices Recently (2017)

New Zealand sheep farmers turn to cattle as the world price of milk rises (2017)

Beef Prices Come Down As Supply Increases (2016)

Russians rush to stores to pre-empt price rises (2015)