Here’s Why the Housing Market Continues to Struggle With Low Inventory

Tight housing inventory supply could put a strain on this year’s spring home-buying season, according to the monthly Outlook released by Freddie Mac.

The low supply of inventory continues to push home prices up as they outpace rising incomes. Rising home prices combined with higher interest rates caused affordability to decrease in March.

Freddie Mac outlines four reasons why housing inventory remains low. They are:

  1. Fear of low inventory
  2. Mortgage rates
  3. Home prices
  4. Housing starts

Freddie Mac predicts home sales will come in at 5.9 million in 2017, falling from 5.97 million in 2016, which was housing’s best year in a decade.

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