Thursday, January 29, 2015

Shrinking inventories for Home buyers

Home price gains accelerated at end of 2014
The number of homes on the market fell for the first time in 16 months in December, hinting at a potential acceleration in home prices in the months ahead.
That might be good news for sellers, but not for buyers who could get priced out of the market or the real estate agents who represent both sides in home sales.
“Months’ supply is already low at 4.4 months,” said National Association of Realtors Chief Economist Lawrence Yun in an analysis of the trend. “More inventories are needed, not less. Or else, home prices could reaccelerate.”
Inventory dropped only slightly in December — it was down 1 percent from a year ago, to 1,85 million homes — but the months’ supply of homes on the market was already low. Anything less than six months of supply is generally considered an indication that demand is outstripping supply.

http://www.inman.com/2015/01/28/shrinking-inventories-could-end-up-pricing-more-buyers-out-of-the-market/

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