Home Prices Still Inclined to Rise Amid Short Supply

U.S. home prices will continue to rise well into 2015 unless substantially more homes are put on the market, economists predict. Many industry experts see the nationwide inventory shortage worsening instead of improving this year. Demand for homes will continue to outpace supply — especially in markets characterized by high incomes and healthy job growth, including West Coast tech centers, oil boom towns in Texas, and fast-growing Sun Belt markets. The lack of supply has had a domino effect on the housing market, leading to higher prices and lower sales. California has been hit the hardest, says National Association of Realtors chief economist Lawrence Yun, but just about every region of the country has been impacted. Difficult permitting processes in some areas and tight lending standards are keeping home builders from putting more supply on the market. | Read More