Will decreasing inventory push up prices?

Posted on 01/28/13 No Comments

The last notable housing market metric to become evident in the recovery is price.

Time to close is decreasing, homes under contract continue to climb (except for last month, which relates to the point of this post), housing starts are up and builder confidence is the highest it’s been in years. Now, news that the available inventory of homes continues to shrink could finally be the impetus to push up home prices.

Because there are less homes for sale on the market, there has been a negative blip on the houses under contract chart. According to an article written by ¬†econmics writer for the Associated Press, Christopher Rugaber, “The decline signals that sales of previously occupied homes may cool off in the coming months. There’s generally a one- to two-month lag between a signed contract and a completed sale.¬†Still, the broader trend in home sales remains solid.”

Some forecats predict a national home sales increase of 9 percent for 2013. That could be on the bold side, as the fed still has the temporary bridge erected across the fiscal cliff to worry about. Nevertheless, families looking to sell a home in 2013 should expect a better price than what they may have seen at this time last year.

Spring is usually an active time for real estate sales, often setting the pace for the remainder of the year. Some are worried that the tight inventory and increasingly difficult mortgage market may combine to hamper sales between now and June.

Houses for sale in Raleigh, Cary and Apex continue to outperform other national markets in overall activity, which is no surprise given our community’s long-standing reputation as one of the country’s best places to live and work.

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