First we had a frothy real estate market and prices rose rapidly keeping some out of the market and forcing others to make bad purchasing and loan decisions. Then we have had several years of falling prices, foreclosures, short sales, bankruptcies ect. What in the world can happen next?
Answer: Can you believe a shortage of inventory? Yes, real estate professionals all over the country are reporting a shortage of housing inventory as the number of homes on the market are plummeting. Here in the greater Phoenix market, inventory is as low as it was at the peak of the frothy market. At some point, this is going to effect pricing. In fact, in some neighborhoods, it already has with price stabilization and some appreciation. Listing prices are on the rise so it appears a struggle between buyers and sellers and don't forget the loan underwriters and appraisers.
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