Analysts continue to base their forecasts for the US housing market on the economic conditions. It no longer works (see discussion). Rephrasing James Carville's quote, "it's the demographics, stupid".
|Case-Shiller Comp-20 housing index MoM vs. forecast (Bloomberg)|
USA Today: - The situation is "being created by smaller inventories" of homes for sale, said Everett King, president of ERA King Real Estate in Birmingham. Pent-up demand and fewer homes on the market are letting sellers charge about 5% more than six months ago, he said. "Anything between $350,000 and $400,000 just goes at the asking price."