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HOME PRICES ARE HIGH. WHAT COULD COOL THEM DOWN?

Aruba, July 16, 2018 - The housing market may be starting to benefit from the one thing that can loosen a long-running squeeze that has crimped sales and driven up prices: more homes.

The nation’s housing inventory increased 12.2 percent in the second quarter, the biggest gain since early 2015, according to real estate research firm Trulia. Housing supplies were still down 5.3 percent from a year ago, a dynamic that has continued to push up prices.
 
But that’s less than the double-digit annual declines that had prevailed since the second quarter of 2017 and the smallest drop since early 2017.
 
Thirty of the nation’s 100 largest metro areas saw their housing supplies increase on an annual basis last quarter. That’s up from just 13 early in the year and represents the largest share of big cities with rising inventories in more than three years.
“It could be the start of a shift in inventory,” says Trulia data analyst Alexandra Lee, though she added it’s too early to tell for sure.
 
She attributed the increase to an acceleration in new home construction as well as the willingness of more existing homeowners to put their houses on the market. Some, she says, want to benefit from big price gains on the assumption that housing prices may be peaking. And baby boomers who have stayed in their homes while delaying retirement may be hanging it up in greater numbers.
 
Read more here.
 

By orbitalnets.com