Shortage of inventory could limit home sales, Boost prices!

January’s pending home sales numbers suggest that inventory shortages will mean a less dramatic increase in sales this year than last, but that home prices will show stronger gains!

Pending homes sales were up 4.5 percent from December to January and 9.5 percent increase in a year ago.  The forecast is 5.0 million existing homes sales this year, down from a previous estimate of 5.1, home prices could exceed 7 percent up from the previous estimate of 5.5 percent.

SUPPLY AND DEMAND AND JOB GROWTH!

Enhanced by Zemanta