INVH - Low supply propels home prices higher but there may be signs of slowing ahead

Scarce inventory continues to push home prices ever higher, hurting the affordability and constraining real estate sales as seen in April's existing home price report.That's backed up by Zillow's April Market report, which shows that inventory fell 1.4% from March, a trend of monthly declines that started in August.And Zillow's Home Value Index reaching $281,370 in April, increased 1.3% from March, the largest jump since its data going back to 1996.Redfin says 50% of homes are now selling above list price during the four weeks ended May 16; that's up 23 percentage points from the same period a year ago.There are signs that the squeeze may ease, though.As vaccinations for COVID continue, more prospective sellers may feel more comfortable to open up their homes to prospective buyers, according to National Association of Realtors economist Lawrence Yun."The additional supply projected for the market should cool down the torrid pace of price appreciation

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Low supply propels home prices higher, but there may be signs of slowing ahead