What’s Driving Home Prices Higher?

May 5, 2015

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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