What is typically a consequence of higher demand for properties?

When there is higher demand for properties, it often leads to an increase in property values. The dynamics of supply and demand in real estate indicate that as more buyers or investors are looking to purchase properties, the competition among these buyers increases. This competition can drive up the prices as sellers can command higher offers in a seller's market.

In a scenario where demand significantly exceeds supply, prospective buyers may find themselves in bidding wars, which further escalates property values. As people are willing to pay more to secure their desired property, the overall market value for properties in that area tends to rise. This phenomenon is a fundamental economic principle where increased demand leads to higher prices, reinforcing the idea that higher demand typically correlates with increased property values.