SANTA ANA, CA—Homeowners are beginning to feel like they're prisoners in their own homes due to the dearth of supply, according to a recent report from First American Financial Corp. On the other hand, housing starts appear to be increasing, which could ease the situation a bit, another report from the firm states.
The lack of supply continues to hamper home sales. Potential existing-home sales decreased to a 5.96 million seasonally adjusted in November 2017, a 2% month-over-month decrease. This also represents a 98.3 percent increase from the market potential low point reached in December 2008.
In addition, in November, the market potential for existing-home sales decreased by 1.5% compared with a year ago, a loss of 93,000 sales. Currently, potential existing-home sales is 404,000—or 6.8%–below the pre-recession peak of market potential, which occurred in July 2005.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
