A Looming Housing Shortage?
Posted at 3:15 p.m. on Feb. 25
Walter Kurtz: “Homes available for sale as well as the housing supplies measured in months are now at pre-recession levels, while household formation continues to recover… Some evidence suggests that in the more depressed housing areas banks are indeed sitting on foreclosed properties, unwilling to sell… Clearly many more homes will be hitting the markets this year. But it really doesn’t make much difference if people who move out of these homes end up buying or renting – they need to live somewhere.”
“The danger of course is that with spring approaching (generally a period of increased demand for homes), some markets could overheat due to tight supplies, worsening home affordability and dampening sales numbers.”