Low Demand, Low Supply, High Price Expectations

From the ET Forum …

So that’s where we are in our local real estate market – low demand, low supply, high price expectations – and my sense is that this is where we are in lots of markets … not just CT residential real estate. Maybe it’s just the summer doldrums, I dunno. Maybe I’m just taking my local experience as more meaningful than it is. I’d be really interested to hear if anyone is seeing or experiencing the same, either in RE or anywhere else.

Because this is how stagflation happens.

Seasonality is so tough to parse, especially against pandemic-affected seasonality, but it sure seems like inventory got legitimately bought down in Q4/Q1, after which brokers sold that experience and y-o-y % changes to drive a corresponding increase in supply.

Also no idea wtf is going on in multi-family / condo land around here, but definitely seems distinct from the single-family experience.

— Ben Hunt | July 28, 2021|

To learn more about Epsilon Theory and be notified when we release new content sign up here. You’ll receive an email every week and your information will never be shared with anyone else.

The Latest From Epsilon Theory

DISCLOSURES

This commentary is being provided to you as general information only and should not be taken as investment advice. The opinions expressed in these materials represent the personal views of the author(s). It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. Any action that you take as a result of information contained in this document is ultimately your responsibility. Epsilon Theory will not accept liability for any loss or damage, including without limitation to any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Consult your investment advisor before making any investment decisions. It must be noted, that no one can accurately predict the future of the market with certainty or guarantee future investment performance. Past performance is not a guarantee of future results.

Statements in this communication are forward-looking statements. The forward-looking statements and other views expressed herein are as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and there is no guarantee that any predictions will come to pass. The views expressed herein are subject to change at any time, due to numerous market and other factors. Epsilon Theory disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein. This information is neither an offer to sell nor a solicitation of any offer to buy any securities. This commentary has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Epsilon Theory recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.