More folks are eager to buy this year, but the supply of homes for sale just isn’t big enough. Competition for listings figures to be fierce for the rest of 2018. Still, some signs of relief are starting to appear.
The market is still plagued by too few homes for sale – the legacy of the construction bust that followed the bursting of the bubble a decade ago. Fewer homeowners are inclined to sell when they know finding a new place could be tough. The supply of homes is constrained because residential construction has been weak for years. As inventory levels of new homes fell in most markets, homeowners who wanted to trade up became concerned that they wouldn’t be able to find what they wanted if they sold their home. Instead, many stood pat and invested in home improvements. New listings of existing homes fell, making it more difficult for first-time home buyers to find something.
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