In describing the housing market as in “pre-covery” instead of “recovery”, the only factor that has really changed in the housing market is falling inventory, according to Jonathan Miller, writing on the millersamuelblog. He says falling inventory is the result of sellers becoming buyers (or renters), but with 40 percent of mortgage holders having low or negative equity, they don’t qualify to trade up because credit is tight, so they wait and hope the market will improve. Unemployment has fallen very little, personal income is basically flat, low interest rates are keeping demand constant, and as MHProNews understands, tight credit continues to hold back supply which causes prices to rise.

(Image credit: HousingWire)