People hired for jobs in the area, such as at a recently opened business, search for homes nearby. This search creates demand for homes in the area. Thus demand and supply dynamics of the market take home prices to a higher level. You should note that there may be a reverse situation where you face a situation where there is a higher supply of homes. The large supply of homes for sale relative to demand causes the sellers to lower their prices. Depending on the situation, you need to add to or subtract from $63,000 to get a fair price for you to offer to the seller.