Homebuyers Face High Prices, Low Supply

Investing.com - A decade after the housing market slump, conditions are beginning to look a lot like the boom that preceded the bust. Though bidding price wars are not nearly as common as they were back then, sales of existing, single family homes are at a 10-year high and buyers are struggling to find affordable homes.The number of homes on the market has fallen 31 consecutive months to a record low. Meanwhile, prices have increased 70 months in a row, and are now 6% higher than they were at the time of the previous peak in 2006, according to the latest S&P CoreLogic Case-Shiller survey.The cities with the biggest price increases in 2017 were the same ones as before the housing bust a decade ago. Las Vegas, for example, registered a 10.6% increase last year.Analysts expect the market to become even tighter in 2018 as demand picks up. With mortgage rates on the rise, some buyers are rushing to close on deals before rates move even higher.