Part 3/12:
The Critical Role of Supply and Demand
At the heart of the housing market are two primary forces:
Supply: The total number of homes available for sale.
Demand: The number of prospective buyers seeking homes.
When supply exceeds demand, a buyer’s market emerges, putting downward pressure on prices. This scenario played out after the 2008 financial crisis, with numerous foreclosures flooding the market, prompting prices to fall as sellers competed to offload properties.