Lawrence Yun, NAR chief economist, states the overall trend is a strong pace of home sales. “Competition for existing houses on the market remained stiff last month, as low inventories in many markets reduced choices and pushed prices above some buyers’ comfort level,” Yun said. “The demand is there for more sales, but the determining factor will be whether or not some of these buyers decide to hold off even longer until supply improves and price growth slows.”
Trulia’s Chief Economist Selma Hepp echoed Yun’s sentiment, noting “We’re starting to see a slowdown which may be because home prices are pushing up against the affordability ceiling especially in faster moving markets where inventory is tight.”
Small gains reported in the Northeast and West were offset by larger losses in the Midwest and South. Nevertheless, analysts agree the year will likely finish stronger than in recent years. ##
(Photo credit: Associated Press/Paul Sakuma)
