Auckland house prices are inflating rapidly as we all know. But now its the USA’s turn judging by the latest reports available. So it looks like the bubble will be with us for a little while yet.
The main cause for the housing “crisis” in NZ is from a chronic shortage of homes on the market. Now the same thing is happening in the USA.
Hard as it is to believe, the reasons are the same too. Low inventory, little building, low interest rates and the take up of distressed home sales slowing up because of the shortage.
It looks like ballooning house prices may be here to stay for some time yet.
Real Estate ‘Bubble 2.0 on Steroids’
Friday, 1 Mar 2013
The first official day of Spring may still be 20 days away, but the Spring housing market is already underway. Buyer traffic is rising along with home prices, but one traditional Spring phenomenon is sorely absent: rising supply. The raw number of homes for sale is now at its lowest level in over 13 years, according to the National Association of Realtors, and the numbers continue to fall.
“Some listings are vanishing from a strategic decision of waiting for an even a higher price later. Some are due to few newly built homes available to trade-up to, hence some current existing home owners are unwilling to list. Some could be related to fear of being unable to buy after selling,” says Lawrence Yun, chief economist for the National Association of Realtors.
Supplies are down across the nation, not just in the former crash markets, like Phoenix and Las Vegas, where investors decimated inventories of distressed homes in bulk purchases. Listings are down 31 percent in Seattle from a year ago, down 32 percent in Denver, down 20 percent in Houston, down 37 percent in Boston, according to local Realtor associations.