What’s Driving Home Prices Higher?
According to CNN Money, price inflation on homes is caused by homeowners that aren’t selling, builders that aren’t building, and lenders that aren’t lending.
“Price increases – even in the most desirable places – can’t continue to outstrip income growth forever,” Keith Gumbinger, vice president of HSH.com, told CNN Money. “At some point, no one will be able to afford a home.”
Current homeowners aren’t flooding the market with “For Sale” signs, and builders aren’t building enough single-family homes. This results in tight inventory and a more competitive market for homebuyers.
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