Inventory Increases Threaten Price Appreciation | Armonk Real Estate

The inventory deficit that jump started the recovery is now filling up fast with new listings as home sellers get the message. But are just hastening the day prices slow down?

The current January to April year-to-year to date increase in the supply of existing homes is the third highest in nearly 30 years writes CoreLogic Deputy Chief Economist Sam Khater in the current issue of CoreLogic’s Market Pulse newsletter.

“How much further can the rapidly appreciating markets go?” he asked, noting that most states are currently close to their fundamental long-term price trends relative to long term inflation-adjusted trend.

Khater suggested that the “invisible lid that has been on supply” is in the process of being removed. A key factor has been the fact that more homeowners not only are above water but also have reached or exceeded their “reservation price”-the price lowest price at which an owner is willing to sell. “For homeowners with positive equity, the reservation price condition is met when their willingness to sell is at a higher price than the market currently supports.


Bedford New York Real Estate | Bedford NY Homes by Robert Paul Realtor » Blog Archive » Inventory Increases Threaten Price Appreciation | Armonk Real Estate.

About robertpaulrealtor 914-325-5758

Realtor in Bedford NY specializing in marketing and selling luxury homes and finding the perfect homes for new buyers. Working in Armonk, Katonah, Pound Ridge, Lewisboro, Chappaqua and North Salem. 914-325-5758
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