Thanks to a meeting of several factors, the rock-bottom housing bargains we’ve gotten used to are slowly fading. A combination of slowing new foreclosures, falling mortgage rates and rising home prices has lead to an overall increase in new and existing home prices. There is also a shortage of home inventory.
Across the US, new house prices are up 17% in August over a year ago, with nearly a 10% increase in the price for existing homes. There are also fewer foreclosed homes hitting the market, which translates to fewer unsold homes available. This has reduced the backlog of homes from nearly 9.5 months to just over 6 months in August. This is happening while the demand for foreclosed homes is at its highest as more and more people look for the deep bargains that often come with them.
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