The housing market is experiencing a supply squeeze with fewer homes for sale than at any time in the last five years. Low levels of new build and reluctance by existing homeowners to move is limiting availability, while increased demand is taking up what stock there is to buy. Further growth in demand, without a commensurate increase in supply, will push prices further ahead. A substantial supply response to reduce the pressure on prices looks unlikely. An over-pricing of new supply is more likely to curtail the momentum in prices.
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