http://www.usatoday.com/story/money/business/2013/01/25/homes-sellers-real-estate/1862395/
This is an interesting article because it brings into play the principles of economics. There is a short supply of homes which is causing the price of homes to increase. This is benificial to the seller but not the buyer. One reason for the shortage of housing is because homes are not being constructed. According to the article, there were less than 500,000 homes that were built within the last three years. That is less than half the number built annually between 1993 and 2007, according to the Census Bureau.
This is an interesting article because it brings into play the principles of economics. There is a short supply of homes which is causing the price of homes to increase. This is benificial to the seller but not the buyer. One reason for the shortage of housing is because homes are not being constructed. According to the article, there were less than 500,000 homes that were built within the last three years. That is less than half the number built annually between 1993 and 2007, according to the Census Bureau.
The housing market has been arguably most depressed sector since the start of the financial crisis, that was mainly cause by the housing bubble. I believe that as the economy is recovering, the housing market will grow, increasing supply. Demand for houses could have been spurred by the actions of the Fed that committed to buying mortgage-backed securities. Higher demand also offers opportunities for jobs in industries like construction, which could potentially bring unemployment rate down. I think that as the economy slowly recovers, the supply of homes will start increasing with it.
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