Scarcity is a driver of demand
but scarcity is not the ONLY driver of demand. If it were, people would “settle” for whatever is “Getable NOW?” rather than taking the time and energy to find something better.
This is true in most everything.
This week, I have seen a series of mutually exclusive blog and facebook posts with an underlying message that folks are becoming more focused on quality (of product and experience) than price.
“It’s more expensive, and it’s worth it because the alternatives are inferior.”
We are in a world in which most of us have unbelievable, INSTANT access to information in the palms of our hands.
We can find the BEST prices on anything we want with a few swipes on the smartphone glass . . . and we can see what other people think about the things we are buying.
When a price seems “Too Good to Be True,” it probably is, and we’re sharp enough to steer clear.
So . . . my question:
Must we all have “instant gratification” every time we yearn to have something?
Who wrote the law that says that we must scratch the itch the minute it starts to tingle?
As of the writing of this blog post, the inventory of houses and condominiums available in the Nashville & Middle Tennessee real estate market is relatively scarce . . . yet there are still a fair number of listings on the market that are lingering. Some of these are “Re-sales” and others are new construction. One might think that motivated home buyers would buy these houses because they are the only houses available, but that’s not happening.
The home buyers of today are cautious and are asking this question: “Why should I buy something that isn’t perfect NOW instead of waiting for my perfect house to come on the market?”
“I can wait to list my house for sale until I find that perfect house.”
or . . . I can live comfortably in this rental house/condo until that perfect house pops on the market.
So . . . in general, my observation is that most people are being more cautious about their big decisions. They are more interested in getting precisely what they want and are willing to pay the price for it when it comes along.
Scarcity and Historically low mortgage interest rates aren’t compelling the general public to buy now because they’ve now been around long enough to be taken for granted.
All of this to say . . . There are a HUGE number of potential house buyers lurking in the shadows watching the market and ready to pounce.
What’s missing now is motivation . . . there’s no carrot on the string in front of their noses.
We can solve this . . . Let’s bring more high quality houses into the market even at premium prices.
Today’s home buyers have a healthy appetite for such houses and are willing to pay the price.
Connect with me if you know of anyone “lurking on the edges” of listing their house for sale.
Hoping you’re in the midst of a fabulous week.