It appears that the latest unofficial strategy to raise home prices is working. Redfin reports that average home values are rising due to one simple thing – no one is selling.
Since July of last year there are now 28.1% less homes for sale. This trend is expected to continue through the end of the year which should keep prices climbing for a while.
I’m sure you can imagine the next step in this little saga. Prices will rise to a certain level where a whole crowd of people will surge forward with dreams of selling. A flood of new properties will hit the market, demand will be met and exceeded, and prices will start to head down.
Of course, this is part of a normal trend for the most part. But what’s unusual here are the extremes. We haven’t seen a sustained up-trend like this in a while, and if people are holding off on selling in this market it could mean that more folks are meeting their expenses, including mortgage payments. Let’s hope that indicates something positive for wages and employment.
So I’ll keep my eyes on the numbers as they come out, but I want you to comment here and confirm my hunch. Do you think your local economy is going better? Or how about just you? Are you more secure, is bill time a little less stressful? We’re all here for each other so share your stories with our community.