The bottom line: More worrying than interest rates these days is pace of home price appreciation, which is fueled largely
by insufficient inventory for a growing population.
The imbalance is indicative of a market in
which insufficient inventory is colliding head - on with soaring values — and Power Brokers are adapting in pioneering ways.
Economists at the agency predict that the average rate this year will be 3.9 percent and that, coupled with an uptick in home prices because
of insufficient inventory, could put additional constraints on homebuying power.
«Both markets have the potential for significant gains and we expect heightened demand and
insufficient inventory to drive price escalation and sellers» market conditions.»
«In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but
insufficient inventory to improve sales more strongly.
Several factors have contributed to
the insufficient inventory.