Seattle’s low inventory creates affordability concerns
A new report by RealtyTrac shows that 96 percent of the counties that the company follows are better off than they were four years ago and low inventory has helped home prices accelerate past pre-recession levels in markets such as Seattle, San Francisco, Denver and Oklahoma City.
“Those rapid home price gains are causing a concerning drop in affordability rates in some cities, but home builders and homeowners with regained equity should help provide more supply to balance out many of those markets in 2014,” said Daren Blomquist, vice president at RealtyTrac.
However, there’s a ways to go in the national housing market, with only eight percent of the 410 U.S. counties analyzed faring better than they did during the housing boom eight years ago.
RealtyTrac analyzes housing market health by gauging four main categories: home price appreciation, affordability, percentage of bank-owned REO sales, and the unemployment rate.