Rising Prices Might Hold Back Sales Inventory

Over eight in 10 respondents to a survey of potential home sellers taken by Redfin last week believe home prices will rise in the next 12 months. This is up from 75% from a similar survey in the fourth quarter.

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Another finding was that 34.1% felt that missing out on future price gains was a major concern, up from 30.6%. This passed general economic conditions (33.8%) as the top concern from this group.

Almost half said they are planning to sell up from 45%.

However, Redfin added that an inventory shortage remains a problem, as the company saw inventory plummet in every market it serves, with an average of 30% fewer new listings this year than last.

The growing number of home sellers whose top concern is that they may miss out on even greater price gains suggests homeowners' continued reluctance to enter the market right now, it added.


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