top of page

The Dynamics of Supply and Demand in Real Estate

Updated: Jan 12

As experts start to make 2023 Home Pricing Forecasts, many agree that homes will continue to gain value. On the other hand, there are also others that claim that home prices will depreciate. Below are forecasts from different experts in the housing market:

Image source: Keeping Current Matters

Here are some reasons why some experts are claiming appreciation:

1) Supply and Demand - although there are new construction of homes, there currently isn't enough supply to meet the demand. It's still a sellers market, although it's slowly starting to shift into a buyers market.

2) Millennials Peak Homebuying Years - the largest demographic of buyers today are millennials. Although baby boomers still play a big part in purchasing homes, it is evident that millennials have been really keen to have a place they can call their own. This means that the demand will be here for a while.

Possible Depreciation

According to, home sales aren't going down because there are little or no potential buyers. There are actually plenty who are willing to buy a home. However, since current home prices are up by about 34% versus two years ago, many can't afford to enter the housing market.

Experts base their forecasts on data and experience. They may not always have the same insights, especially since the housing market is not 100% predictable. Whether prices continue to go up or eventually go down, the truth is, there is no crystal ball to tell how exactly the future plays. There is only the dynamics of supply and demand, which every business relies upon, particularly in real estate, and will continue to do so for years to come.

If you want to get expert insights and guidance about your local real estate market, contact your trusted Realtor® Kyle Kelly or any member of The Island Wide Team today.

Call or Text: 631-831-0912

FB Messenger: Personal Email: Team Email: Instagram: @kkellyny @IslandWideTeam Twitter: @kkellyny TikTok: @therealdoublek YouTube: YouTube: The Island Wide Team Website: Website:

Disclaimer: Views and information provided in this post are for general informational and educational purposes only and is not a substitute for professional advice. Before taking any action based upon such information, we encourage you to consult with the appropriate professionals. The use or reliance to any information contained on this site or mobile application is solely at your own risk.

Blue and Pink Modern Tech Electronics and Technology Retractable Exhibition Banner (6).png
bottom of page