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Just a cursory look at the numbers gives the impression that the US housing market is having some troubles.
So far, there have been three consecutive months of declining sales, and expectations indicate a further decline in January. But, a closer look shows that the market appears to be having a “good” problem: there just aren’t enough houses to buy.
Mortgage rates are just 18 basis points away from record lows (last time being early 2013), and demand for housing continues to increase. A logical consequence of record unemployment and steady wage growth.
But, there appears to be an offset between supply and demand: buyers are looking for more affordable housing, while apparent demand is pushing prices higher.
The Trend & the Gap
Median home value in the US stood at a record of $245.193 at the end of January, a 3.8% yearly increase (by comparison, inflation registered 2.3% during the sa...
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