condos: A Seller's Market for 2014
- 02/05/14 04:49 AM
Housing demand weakened over the second half of last year as the rise in mortgage rates and home prices reduced affordability. Merrill Lynch's Housing Watch suggests another factor weighing on home buying: extremely lean supply. Months' supply of homes, the ratio of inventory to sales, held at low levels through the year. This means that inventory has declined in tandem with the drop in sales.
It is still a seller's market as Merrill Lynch sees it. They expect this to become increasingly evident, resulting in a pickup in inventory this year. Key takeaways are: