Home Prices Climb as Supply Dwindles - WSJ.com
Waiting in the wings are huge inventories of distressed homes that the banks have not yet processed. We'll have to wait to see what happens when these inventories are put on the market as prices rise. There is also strong resistance to price increases from traditional sellers who will loosen their grips on their properties as prices start to rise. My guess is that we have not yet seen the end of depressed housing prices.Home prices rose by their largest percentage in at least seven years during the second quarter, propelled by low inventories of properties for sale and high demand for bargain-priced foreclosures, according to two reports Tuesday.
Prices rose by 2.5% in June from a year ago, and by 6% from the previous quarter, said CoreLogic Inc., a Santa Ana, Calif., data firm. The quarterly jump was the largest since 2005.