Rising Housing Demand!

Construction activity up, inventory levels down

According to the CoreLogic MarketPulse report1, the April Home Price Index (HPI) including distressed sales posted their second consecutive month of year over year increases, the first such increase since the summer of 2012, “when the housing market was benefitting from tax credits,” CoreLogic points out.

During the month, single family construction activity rose 2.3 percent, up 25 percent over the last six month, and inventory levels fell to just over six months, hitting the lowest level seen in over five years. As the flow of REOs has slowed over the past 18 months, the report notes that negative equity has become a positive force in real estate markets by restricting supply in the face of increasing demand.

A transitioning market

 Negative equity is likely contributing to the decline in inventory, the public’s perception about pricing is likely a largely contributing factor, as those who are in the market that can actually qualify see prices as a bargain these days.
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Realtor with Greg Garrett Realty, actively licensed in the state of Virginia

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