A Shortage of Homes for Sale? Mortgages?

Stop me if you’ve heard this one: “We’re running out of inventory.” The inventory in question is housing and in selected real estate markets Realtors are complaining (here and there) about the lack of homes in “hot” neighborhoods. (The operative word here is “hot.”)  Of course, Arizona, Florida , and Nevada don’t have to worry about a lack of inventory, especially when you factor in all the REO units for sale in these “sand” states. But rest assured – as long as the U.S. economy doesn’t tank – the day is coming when housing will increase in value because of supply-and-demand issues. The chief reason is this: lack of new home building. And there’s something else to consider: who will originate these loans, especially if low downpayments are all workers can afford? Yet, plenty of hungry nonbanks are making major inroads, including AHMSI (Homeward Residential), Residential Finance Corp. , Guaranteed Rate, HomeTown Lenders, and others. The market is changing as the megabanks continue to lose market share, except (of course) Wells Fargo.