Similar to August and September, October showed continued resilience, but at a slower pace of growth than the first half of the year. We are still burning off nearly six years of pent-up housing demand from 2006 to 2011. This has caused a rather quick jump in values and some recent signs of an uptick in listing inventory.
Both the release of that pent-up demand as well as the increase in inventories is a result of the following:
- There was a panic element to the decline because prices fell further than they should have based on the pure economic conditions. There has been a quick jump back to compensate for that.
- Housing affordability has been at an all time high bringing additional buyers into the housing market (thanks to a combination of lower