WASHINGTON (AP) – U.S. home sales are climbing. Prices are rising, too. So the outlook for the housing market is golden, right?
Not entirely.
A series of reports released Tuesday pointed to potential cracks in the foundations of America’s residential real estate market.
On the one hand, job growth and low mortgage rates have fueled demand and boosted sales to levels that were last glimpsed in the waning months of the housing bubble nine years ago. Those gains could spur more construction and additional spending on furniture and renovations that could help lift the economy.
Yet the number of homes for sale has fallen. With demand for homes up and supply down, prices have risen faster than incomes. Because many homes have become unaffordable for would-be buyers, further gains may be unsustainable.