Here we go again: CoreLogic’s latest HPI report is telling us what our boots-on-the-ground Realtor sources already know. Fewer homes on the market has meant higher-than-average home price appreciation ahead of one of the most brisk times of year for Dallas-area Realtors. The spring selling season has been filled with cold calls and pleas from Realtors for homeowners who are on the fence about selling to just get off their duffs and do it.
But, while the limited inventory may be a pain in the posterior for those searching for the right home, it has had one side-effect worth mentioning: Market stabilization.
“Since the second half of 2014, the dwindling supply of affordable inventory has led to stabilization in home price growth, with a particular uptick in low-end home price growth over the last few months,” said CoreLogic chief economist Dr. Frank Nothaft. “From February 2014 to February 2015, low-end home prices increased by 9.3 percent compared to 4.8 percent for high-end home prices, a gap that is three times the historical difference.”