Thursday, February 21, 2013

Supply of Homes at Its Lowest Level in 13 Years

U.S. home resales edged higher in January and left the supply of homes at its lowest level in 13 years.

According to the National Association of Realtors, the inventory of existing homes for sale in the US fell 4.9 percent from December to 1.74 million, the lowest level since December 1999. The inventory is down 25.3 percent from January 2012.

Some of you won't like me dragging this guy into it, again, but without the money around to buy up houses, the supply wouldn't be dwindling, near as dramatically, if at all:

What is not being taken off the market by individual buyers is being grabbed by major players, who have easy access to newly printed money. From many different reports I am hearing, the big players are buying thousands upon thousands of homes.


  1. I saw some ads for houses for sale. The sale was open to owner occupants a whole 15 days before it was available for sale to the big players.

    15 days, is that supposed to be meaningful?

  2. Show us your reports then. Until you do, I'm not blaming rising gas or house prices on Bernanke money printing. This is econ 101, pure and simple. Supplies get tight, prices go up, there are profit opportunities so investment increases, and then prices go down. There are always going to be "major players" that have extra cash to invest, that is obvious. Bottom line if demand > supply prices will rise.

    With the exception of the two posts today, you usually imply with your rants about Bernanke money printing, that almost all demand anywhere is solely due to artificial stimulus.

    1. "that almost all demand anywhere is solely due to artificial stimulus."

      Kind of like GDP?

  3. well i hope they buy my house, cant wait to get out from under that mortgage