Inventory Issues Highlight Downside of Lower Rates

While declining interest rates are generally viewed as good news for consumers, they aren't without their negatives. Realtor.com's September housing trend report released last week highlights one of them. Inventories of available homes, which had been recovering from months of record low numbers, have begun to shrink again. Even worse for first-time buyers, the decline is hitting hardest within the lowest price tier. Overall inventory was down 2.5 on an annual basis compared to a 1.8 percent annual decline in August, but entry level homes , those priced under $200,000, continued a decline that started in May of 2014. The supply of homes in that tier for sale in that category declined by 9.8 percent in September. The largest segment of inventory is in the mid-price range, homes listed between...(read more)

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