Low inventory due to many people still upside down and hedge funds buying up everything are creating a housing shortage that is causing prices to jump almost 20% year to year in our area.
Technical factors rather than fundamentals are driving prices. Housing prices usually jump because of rising unemployment and income which also drives the local economy. Not so this time around. Housing is not the lagging economic indicator. It’s the leading one.
What do you think about 2013 prices?
