According to the National Association of Realtors (NAR), existing home sales edged higher in January as the national market turns more into a seller’s market. Home prices continue their gradual rise above levels last year.
Total existing home sales increased 0.4% in January and 9.1% from this time last year. Chief Economist of the NAR, Lawrence Yun, said that tightening inventory continues to be a large factor in many markets. Although inventory is expected to rise this spring, it still may be
insufficient to ward off bidding wars and rapid price growth.
Economist say the inventory shortage can be traced to the vast number of homeowners with negative or no equity in their home. As home values continue to rise over the next few years, more and more homeowners will begin jumping back into the real estate market.
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