We all learned in Economics 101 that price is a function of supply and demand. Too many homes on the market, and prices start to come down. Not enough homes on the market, and prices start to creep up. Home prices, though, are a lagging indicator. They're the result of changes in supply and demand.

Tracking the supply and demand of housing in our local areas lets us have a peek into the future, then. We can see trends before prices start to be affected.

5-year Trend5-year Trend