30
Apr 18

Why Home Prices Are Increasing

Why Home Prices Are Increasing | Simplifying The Market

There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient (data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of “irrational exuberance” (this is also untrue as prices are not at peak levels when they are adjusted for inflation), there seems to be no shortage of opinion.

However, the increase in prices is easily explained by the theory of supply & demand. Whenever there is a limited supply of an item that is in high demand, prices increase.

It is that simple. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything more than seven months will cause prices to depreciate (see chart below).

Why Home Prices Are Increasing | Simplifying The Market

According to the Existing Home Sales Report from the National Association of Realtors (NAR), the monthly inventory of homes for sale has been below six months for the last five years (see chart below).

Why Home Prices Are Increasing | Simplifying The Market

Bottom Line

If buyer demand continues to outpace the current supply of existing homes for sale, prices will continue to appreciate. Nothing nefarious is taking place. It is simply the theory of supply & demand working as it should.

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30
Apr 18

These Tiny Houses Totally Reimagine How Pergolas Work Into Home Design

Is there anything worse than the sun in your eyes? Feeling the sunshine on your skin is amazing, but looking right into the burning gas star will make you want to claw your eyes out. Now, imagine living somewhere that no matter the curtains you bought, the sun just beamed right into your house and blinded you daily.

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30
Apr 18

A Creative Couple's Vintage Eclectic Spanish Home — House Tour Greatest Hit

Name: Lucia and Jose
Location: Valencia, Spain
Size: 1291 square feet
Years lived in: 1 year, renting

Natural light bounces off of the high ceilings, patterned tile floors and other dazzling architectural features of this Spanish apartment, which serves as both the home and workspace for a creative, world-traveling couple. Lucia and Jose run Anker Prod, where they create videos for advertising and weddings. And though they’re lucky to live in beautiful Valencia, they are also fortunate to get to travel the world for their work, as well.

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30
Apr 18

Could This Be the One Thing Deterring You From Buying a Home?

Sure, that old Victorian home seems great now. It has original floorboards and the crown molding is so charming. But once you purchase, every creaky step will send a shiver up your spine: One wrong move and the whole place could crumble down faster than you can say “poor house.” It’s a scary thought, but you’re not alone. In fact, threat of costly repairs is the number one stress for homeowners.

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30
Apr 18

You've Been Using Command Strips All Wrong

Command strips are game changers for renters and dorm residents — or really anyone really who doesn’t want to do damage to their walls. We love all the ways they are handy around the house, use them all the time in our studio for photoshoots, and have learned a thing or two about best practices. If you haven’t cracked the Command strip code, and still have issues making them work for you, avoid these six common, but preventable mistakes.

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30
Apr 18

This is What Homes Look Like in the Happiest Country in the World

Life is better in Finland. Proof? A recent report from the United Nations finds that the Nordic nation’s inhabitants are the world’s happiest, as Finland ranks highest in top indicators of well-being, like income, healthy life expectancy, social support, freedom, trust and generosity. (Norway, Denmark and Iceland take the next three spots, so clearly we should be taking these Nordic countries out for coffee and politely asking them to tell us everything).

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29
Apr 18

This 400 Square Foot 'Tiny House' is My Dream Home

Here at Apartment Therapy, we write about tiny houses a whole lot. Sometimes, I find myself wondering if we’ve reached peak tiny house. Are these adorable little dwellings on wheels just glorified trailer homes? Are they destined for the pages of Craigslist in a few years, once the mania dies down? Or are they a reflection of a cultural shift in the way we look at our homes, where bigger isn’t always better?

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29
Apr 18

WOW Air Is Having a Sale That Will Have You Booking a Trip To Iceland in 5 Seconds

How many times have you seen an airfare sale and thought, “I am really just going to book this trip and wing it!” Probably at least 100 times.

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29
Apr 18

The 5 Best Products from Costco, According to Employees

On the face of it, shopping at Costco seems like it should be a very straightforward experience. With any luck, you avoid impulse-buying a handful of diamonds on the way in (yes, Costco sells diamonds), and then you check out and stop for a $4.99 rotisserie chicken and a $1.50 hot dog at the food court on the way out.

But some of Costco’s deals are better than others, and nobody knows that as well as Costco’s own employees.

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29
Apr 18

An Incredibly Cozy 250-Square-Foot Cabin in the Pacific Northwest — House Tour Greatest Hit

Name: Coralie Hews
Location: Northeast Portland, Oregon
Size: 250 square feet, including loft
Years Lived In: 7 months; renting

Though she was born and raised in the Pacific Northwest, Coralie Hews has always possessed a Southwestern sensibility, especially when it comes to matters of interior design. Her beloved New Mexican textiles, cacti, and earth tones have always had a prominent place in her design palette, so it’s no surprise that all of those tasteful elements come into play in her dreamy, 250-square-foot cabin.

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