A shortage of home on the market is pushing prices higher, said a five-member panel of housing economists while speaking at the annual convention of the National Association of Real Estate Editors, reports Octavio Nuiry of RealtyTrac.
The conference, which took place on June 8 to 12 in New Orleans, was where Lawrence Yun, chief economist of the National Association of Realtors, attributed home price growth to a lack of inventory, especially in high-priced coastal areas like New York, Miami and San Francisco.
“Inventory shortage is grossly inadequate,” said Yun, referring to the terminology.
“One thing holding back the market is supply,” said Jonathan Smoke, the chief economist of Realtor.com. “Inventory continues to be constrained despite demand.”
Meanwhile, CoreLogic’s deputy chief economist Sam Khater said it’s a myth that millennials are the dominant U.S. home buyers flocking to cities and urban areas. Instead, Khater said, many millennials are saddled with student loan debt and are largely putting off home purchases.