Mark Stapp, Professor at Arizona State University’s W. P. Carey School of Business, joined Arizona Horizon to review concerns surrounding home sales.
Stapp attributed the slump to the effect of higher interest rates and low inventory. He also expressed his concern that home builders aren’t adding new inventory ahead of demand which, assuming the market gets active again, will push prices back up if interest rates come down.
Stapp says that people who have been in their homes since the interest rates were very low aren’t motivated to move. As a result, it doesn’t create a fluid housing market and because of that inventories are tough.
Stapp also does not anticipate a decrease in prices and we will see prices continue to rise.
