Reader Asks About “Limited Supply of Homes”; Home Hunting in California

Jon Blogosphere, Economy, Fiscal Policies, Market Commentary, Real Estate

Reader Brendan from California has some questions about housing. He writes …
Hello Mish
I have messaged several Certified Financial Advisors and housing experts about the pending housing outlook for 2016 and 2017. Many suggest housing is related to oil and the stock market. Others say employment outlook and QE play a role.
According the NAR, “there is a limited supply of homes” thus the demand will continue.
What do you think?
We are saving to buy a home, but continue to get priced out of the market. I am doing everything possible to make a good family decision.
Thanks
Brendan
Don’t Rush!
Hello Brendon. First off I commend you for seeking multiple opinions and not rushing into anything.
That said, please recall the alleged shortage of homes in 2005 and 2006. There was no shortage was there?
Rather, there was an increasing number of people willing to pay any price to get in.

This post was published at Global Economic Analysis on January 06, 2016.