Two Charts That Show How Home Inventory Impacts Home Prices

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If you want to know where the Tri-Cities housing market is headed, it’s helpful to understand where it’s been.

2021 was a year unlike any other. Median home prices hit an all-time high, while homes available (what we call “inventory”) hit an all-time low. Coincidence? Not at all! The law of supply and demand applies in real estate, too. When you have extremely low supply coupled with extremely high demand, prices go up. Here’s what that looked like last year:

As you can see, home prices jumped twice in the spring and then were mostly static for the rest of the year. We went from the $340K range to the $360K range, then jumped again to the $390K-$400K range where prices remained for the entire second half of the year.

What about inventory? As you see below, inventory started to dive in the spring. From April through July — when home prices were rising — we barely had about 200 homes available. And when inventory picked up in the second half of the year, prices remained steady.

Isn’t that interesting to see? That’s why we always talk about both prices and inventory. The two are inextricably linked.

If you’re planning to buy or sell this year, keep an eye on the market. We post detailed monthly housing market reports right here on our blog, and we also share abbreviated versions on our social media channels — Facebook, Instagram, and Twitter.

And as always, if you ever want more info about what’s going on in the market, get in touch with us anytime.

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About The Author
Cari McGee

My husband and I came to the Tri-Cities in 1994, and we thought it would be a temporary stop on our way to larger cities. He was a television sports anchor at the time, and we planned to go wherever the "next step up" took us. Twenty-plus years later, we're still here and we've loved every minute of it! We have two children now, and we've found the Tri-Cities area is a wonderful place to raise a family. It's a great place to do outdoorsy things -- I like to hike Badger Mountain or run along the river path. I also love reading ... by a cozy fire in the winter or a beautiful picture window in the summer (with the A/C on!). I've been a licensed Realtor since 2004. I earned my managing broker's license in 2016, which means I can run my own brokerage, or create a team of real estate agents and supervise them, which is exactly what I did when I formed the Cari McGee Real Estate Team in 2018! We have administrative and marketing personnel, as well as additional agents to serve you. I became a director of the Tri-Cities Association of Realtors Board of Directors in 2016, became Secretary/Treasurer of the organization, and was elected to Vice President in 2019. Want to talk about real estate? Click here to schedule a meeting with me!

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