Wednesday, March 27, 2013
If media accounts of sales activity are accurate, another real estate bubble is inflating in our midst. I do find persuasive today's Globe story that a lack of inventory of houses for sale is driving up prices and so properties offered for sale go fast for at least the asking price if not more. The cause of this lack of inventory is open to question. The Globe suggests that many would-be buyers are staying out of the market without much explanation. I do think that people generally believe that prices are rising and that the longer they wait to sell, the greater prices will rise. But I also believe that many people are underwater on their mortgage and are therefore unable to sell. Add to this a societal trend towards smaller living quarters and you have a propensity for owners to say put and perhaps renovate existing residences.