Forbes: Home Prices are On the Rise in 2017

Rising mortgage rates and tight inventory is causing home prices to skyrocket.

Home prices are skyrocketing this year, and there’s no sign that the trend is going to slow down. According to the S&P/Case-Shiller U.S. National Home Price Index that’s cited by Forbes, single-family home prices rose by 5.9 percent in January. That’s up from 5.7 percent the month before, and is a 31-month high.

There are a few factors responsible for the climbing home prices, including the increasingly tight supply of houses. It’s currently a tough market for buyers—the National Association of Realtors notes that overall housing inventory has fallen 17 percent from a year ago. Mortgage rates are also on the rise, which makes buying a home a more expensive experience.

Realtors are hoping that the busy spring selling season will close more deals. In an interview with Forbes, First American chief economics Mark Fleming said, “The low inventory of homes for sale across much of the country is creating increased competition and setting the stage for a very robust sellers’ market this spring.”

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