We are honored to have Chip Wagner, an icon in the appraisal industry and our good friend, as a guest blogger today. Chip recently addressed the housing inventory challenges in the Chicago region. We believe that his observations can be applied to the majority of markets in the U.S. – The KCM Crew
It’s All About Supply and Demand
Definitions of Supply and Demand:
In classical economic theory, the relation between these two factors determines the price of a commodity. This relationship is thought to be the driving force in a free market. As demand for an item increases, prices rise. When manufacturers respond to the price increase by producing a larger supply of that item, this increases competition and drives the price down.