The countdown is on- we need to raise $200,000- help us reach our goal by tomorrow. Donate Now

Home prices surge, not for the reason people think

Mark Garrison Jan 26, 2016
HTML EMBED:
COPY

Home prices surge, not for the reason people think

Mark Garrison Jan 26, 2016
HTML EMBED:
COPY

The latest read on surging American home prices comes Tuesday from the S&P/Case-Shiller Home Price Index. But recent increases are not because buyers are abundant and excited. For the moment, weak supply is driving the spikes more than strong demand. Here’s why supply is low:

1. Developers are building more rental apartments, which means fewer new homes on the market.

2. Some current homeowners who would like to sell aren’t putting their homes on the market. Many families can’t qualify for mortgages under today’s stricter lending standards, which means they’re staying put instead of selling and trading up.

Click the media player above to hear more.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.  

The countdown is on 

We’re trying to raise $200,000 by tomorrow! Help us reach our goal.