Due to the low inventory of previously-owned homes, the National Association of Realtors (NAR) predicts existing home sales will reach five million this year, a 7.3 percent increase from last year, although total sales for the year will rise less than in 2012, as originationnews informs MHProNews. Tight inventories are shooting up prices. “We’re experiencing the strongest price growth in seven years,” says NAR’s Chief Economist Lawrence Yun. He says prices could go seven percent higher in 2013 as long as inventory remains tight. NAR’s pending sales index (PSI), which covers signed contracts, hit 105.9 in Jan., up from 101.3 in Dec. 2012.

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