In the News – ‘Low Inventory’ Defined 2016 Housing
If there’s a compact way to sum up the 2016 housing market, it would be the words “low inventory.” In a year’s-end look at the U.S. housing market, Trulia found that no other issue dictated the course and nature of market as much as a lack of places to buy.
At its most basic, low inventory yields high competition, and, therefore, escalating prices. And prices are indeed escalating. Just last week, the September S&P CoreLogic Case-Shiller Home Price Indices reported that home prices had increased over-the-year for 53 months in a row and had clawed their way back up to within 20 percent below pre-recession peaks when accounting for inflation.
Trulia found that over the course of 2016, lower-priced, or starter homes, saw the biggest decrease in inventory across all markets, nearly 11 percent down from 2015. Trade-up homes dropped by 9.2 percent, while inventory among upper-end homes dropped 3.6 percent. Matt Vos, a real estate agent in Denver, said his city was a prime example of the division between less-expensive and more-expensive properties.
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