The housing market has been sending mixed signals in recent months, with existing home sales rocketing back in May from spring lows. But even with many buyers treading cautiously, Realtor.com Chief Economist Danielle Hale says there are growing signs bidding wars could be coming back in the fall.
The inventory of homes coming on the market has been growing at just under 3%, way below the 6% rate from the start of the year.
“If that declining growth trend continues, we could see maybe this fall that we’ll have fewer homes available for sale than last year,” Hale told Yahoo Finance’s “The First Trade.” “That does make competition a bit more fierce for buyers, it gives them fewer options to choose from, and it’s going to make the market a little but more difficult than it has been so far this year.”
Hale says lower inventory could juice the market in a way low mortgage rates have so far not been able to. Realtor.com says the national average for a 30-year fixed rate mortgage is now 3.91%, near recent lows. That alone could be keeping potential buyers from pulling the trigger, she says. Read the rest of this article Here
Source: Scott Saloway – Yahoo Finance News
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