The number of home sales is lower because of less inventory, but home prices are still climbing
Posted by John Reed on
Today’s Wall Street Journal seems like it is trying to claim the home market has stopped being “crazy.”
Evidence? The number of home sales is falling.
Yeah, not enough listings. That has little to do with home prices. If anything, smaller inventory raises prices.
Some prospective buyers have left the market apparently due to higher mortgage interest rates. That is a mistake on their part. Some sellers HAVE to sell now for various reasons. The higher mortgage interest rates should force those sellers to lower their prices. Although there are a lot of all cash buyers and low loan-to-value ratio buyers so maybe they won’t have to.
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