For example, in the Clairemont area at this time last year, about 425 homes were listed for sale. Today, there are fewer than 100 on the market. A stronger economy, rebounding from the early 1990s recession, gets much of the credit. Also, we're seeing the return of many former residents who moved to the Pacific Northwest, Arizona, Idaho and other Western states. In addition, the number of home foreclosures and short sales, which depress the prices of neighboring properties, has dropped sharply from last year's high levels.
Some neighborhoods offer a broader selection than others.
As a predictor, the law of supply and demand clearly shows which direction the resale market is headed. A combination of the resurging economy, low mortgage rates and pent-up demand for housing will boost prices for the remainder of this year. Higher housing values will increase the equity as well as the confidence and spending of millions of home owners.