(Photo credit: ThinkStock)Yahoo! Homes editor's note: This is one in a pair of guest posts about the tight residential housing market, written by Zillow's chief economist, Stan Humphries. This part explains how and when the inventory will loosen; the other part examines why there's a shortage in the first place.]
What needs to happen in the market for the trends we’re currently seeing to subside and for more inventory to find its way onto listings pages? The good news is the impact of constrained inventory will create the solution to the problem itself. Because demand is high and supply is low, home values have nowhere to go but up, in most cases, as more buyers compete over a shrinking pool of available homes. These rising prices, in turn, will help solve many of the problems outlined in my post examining why we're experiencing a shortage of homes for sale.
Coming Up For Air
The biggest impact of rising home values will be among homeowners with negative equity. Home values rose 6.2 percent year-over-year inRead More »from When will the housing market loosen up?