According to Lawrence Yun, Chief Economist for the National Association of REALTORS inventory shortages in certain areas are building. Although there are shortages of inventory in the lower prices ranges in much of the country with the exception of the Northeast. The total housing inventory slipped 0.4 percent in may to 2.9 million existing homes that are available for sale. These 2.9 million existing homes represent a 6 1/2 month supply. Yun further goes on to say that "the recovery is occurring despite excessively tight credit and higher down payment requirements, which are negating the impact of record high affordability conditions".
With inventory shortages and record low interest rates, I'm thinking we're on the road to recovery. Your thoughts...?
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