|Affordability is always a top concern for people thinking about buying a house. Of course, there are other factors that are important when deciding to move or not. But what you can or can’t afford is the biggest. After all, if you don’t have enough for a down payment or couldn’t keep up with the mortgage on a new place, it doesn’t really matter how close to the office it is or in what school district. And affordability is always changing.
A new report from the National Association of Realtors’ consumer website is good news for prospective home buyers. The report shows that the number of homes for sale saw its largest year-over-year gain in five years. This is important because in today’s market, home price increases are being driven by the low inventory of for-sale homes. In other words, since there are more home buyers than homes, sellers can demand a higher price.
As more homes become available, home buyers will have more choices and price increases will begin to slow. The fact that inventory is up 8 percent over the year before and is showing signs of additional gains means there may be relief on the way for home buyers.