The supply of homes for sale at the end of July was down 9 percent from the previous year, causing homes to continue to fly off the market. Buyers aren’t deterred, though.
CNBC reports that rising prices and short supply are pushing up housing demand. Bidding wars are expected with most offers, especially for properties in major metros.
Builders are focusing more on move-up homes instead of starter homes. New single-family homes priced between $200,000 and $250,000 were up 33 percent on an annual basis as of last quarter, the fastest-growing segment for builders.
"There's no indication that America's starving housing markets will be fed, as buyers fight over scraps," wrote Cheryl Young, senior economist at Trulia.
Rising wages, improved employment, and low mortgage rates are also boosting housing demand.
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