Housing Demand Rises, Supply is Bigger Issue
Several signs in the housing market point to higher demand for real estate, but the big question remains whether the supply will be able to meet the rise in demand, writes Jonathan Smoke, chief economist at realtor.com®, in new commentary at realtor.com®.
“Supply is quickly becoming the biggest concern for healthy growth in home sales in 2015,” Smoke notes.
Builders are more confident: Builders are remaining upbeat about the new-home market. Single-family starts are at the highest number in six years, reaching a pace of 728,000 units in December. “That is a good early sign that homebuilders are gearing production for greater demand in the spring,”
Low mortgage rates: Mortgage rates continue to hit new yearly lows, bringing borrowing costs down for home buyers and refinancers.
Existing-home sales rebounding: Demand has been growing in the existing-home sales market too. The annual pace of existing-home sales was 5.04 million in December, 3.5 percent higher than last year, according to the National Association of REALTORS® latest report.