Will home prices rise this year?
Seventy-one percent of buyers who responded to a Redfin survey now believe that home prices will increase in their neighborhood in the next twelve months, up from 61% last quarter and more than double the 34% who expected rising home prices in the first quarter of 2012.
More concerned by rising home prices than the economy
A third of buyers listed rising prices as a major concern in the fourth quarter, up from just 23% in the third quarter. Meanwhile, 22% said they were concerned with a weak economy, down from 27% in the third quarter.
Buyers flummoxed by low inventory
Fifty-nine percent of buyers listed low inventory as their top concern with buying a home now… the same as last quarter’s rate. Low inventory has remained a constant source of frustration among home buyers for nearly all of 2012. Meanwhile, the welfare of the economy has become a less important factor in the home-buying process.