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. The average price for an existing home rose to $498,700 last month, up from $428,500 at the start of 2017, according to data released on Thursday by CoreLogic. 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.
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.