Prices Are Up, Home Supply Is Down

For those who have been waiting on the sidelines to list their homes, or potential buyers holding out for a deal, it is pertinent to note that the market conditions have begun to shift. For six months or so the supply of homes has been shrinking; the number of homes listed for the first two weeks of January 2013 were down 14% year-over-year. The nationwide supply of existing homes for sale fell to 4.4 months in December, which is the lowest level recorded in over seven years. What this means is that home prices are likely to continue to rise. Home prices were up 7.4% in November over 2011, and with the demand for homes up and low supply, this pattern will likely continue. Analysts are predicting growth in homebuilding activity, but probably not enough to cover demand. To read the full story visit USAToday.

 

 

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