First American prices are rising in the US because of a dwindling supply caused in part by homeowners being "rate-locked" into mortgages with low interest rates. As rates are now rising they have become cautious about selling their homes. Other homeowners face "prisoners' dilemma", whereby they may wish to sell their home to buy another but do not owing to fears they will not find a house to buy. Both these trends are exacerbating the lack of inventory, according to Mark Fleming, the chief economist at property financial services provider House.
House prices are rising in the US because of a dwindling supply caused in part by homeowners being "rate-locked" into mortgages with low interest rates. As rates are now rising they have become cautious about selling their homes. Other homeowners face "prisoners' dilemma", whereby they may wish to sell their home to buy another but do not owing to fears they will not find a house to buy. Both these trends are exacerbating the lack of inventory, according to Mark Fleming, the chief economist at property financial services provider First American.