iStock/Thinkstock(NEW YORK) — Americans bought homes last month at fastest pace in nearly a decade. The National Association of Realtors says existing home sales rose 0.7 percent last month, though fewer than 1.9 million homes were on the market — a 9 percent decrease from last year.
In the meantime, home prices are up 6.8 percent from last year. Kathy Fettke, co-CEO of Real Wealth Network, says regulations and higher fees are causing builders to produce more high-end housing. As such, housing supply is low, with only about a four-month supply compared to the usual six-month average, Fettke says.
“We’re expecting to see double the household formations in the next 10 years than we had over the past 10 years, because we have all these new millennials. And so — but the housing is just not there for them so we expect to see more renters than homeowners in the coming years,” she said.
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