Friday, November 22, 2013
DataQuick Las Vegas
DQNews Nov 22 2013:
There are two main reasons for the sharp annual gains in the median. First, prices have risen as stronger housing demand, fueled in large part by low mortgage rates, has met a relatively low supply of homes for sale. Second, the median has been tugged up by changes in market mix: Fewer homes re-selling now are low-cost distressed properties, while more are mid- to high-end move-up homes.
The data are interesting for several reasons. Above DQ mentions interest rates and supply without going into why supply is low. What I find interesting is the "mix" argument. What if there really isn't a "move up" client but merely the purchase to rent contingent filling out their portfolio after having distorted the low end beyond profitability?