Low inventory and high buyer demand is the oldest formula in history, to put stress on any market. We are starting to see more homes come on the market in our Spokane area , but they are still selling fast, with multiple offers for sellers to choose from. The raw data for the first quarter this year, compared to last year doesn't tell the whole story. The number of homes listed is down almost 17%, and the homes sold is up over 6%. The number of homes sold doesn't count the buyers who made an offer, but didn't get the home. We would need a way to count those frustrated buyers, who haven't been able win in the multiple offer competition. I've been talking with some brokers who have been in the business for some time, and there is a common theme. Builders have not kept up with demand for entry level new construction, and the resale inventory isn't there for the first time buyers. I think the market will work thru this at some point this year, but it has not been a pleasant time for buyers.
I linked a great article by Diana Olick, who writes an article called Realty Check for CNBC, she says that prices have now surpassed their last peak. Interesting read on the National Real Estate Market.