This morning I was listening to the Business news. They had a short blurb on the current Real Estate market. They indicated that prices have been rising for 63 straight months while inventories have been shrinking for over 2 years, I think it was. Will shrinking inventories and rising prices cause a problem for the short and/or long term? KCM seems to believe we are still in a bull market for sales
Recently there has been a lot of talk about home prices and if they are accelerating too quickly. As we mentioned before, in some areas of the country, seller supply (homes for sale) cannot keep up with the number of buyers who are out looking for homes, which has caused prices to rise.
The great news about rising prices, however, is that according to CoreLogic’s Homeowner Equity Report, the average American household gained over $14,000 in equity over the course of the last year, largely due to home value increases.