AMHERST, Mass. (WWLP) - A lack of enough available real estate is to blame for driving house prices higher.
Realtor Rick Sawicki says Amherst-area homes available for sale have dropped 25 percent in the last year. These numbers are in line with a national trend.
Bloomberg Business says one third of the homes hitting the market in major cities around the country are being sold in less than two weeks. The shortage of supply drove home prices up 8.3% in December; their biggest gain in seven years.
Sawicki says it all boils down to consumer confidence.
"The market wasn't so kind to homes; over time people were afraid to put houses on the market," said Sawicki. "Same thing stops people from buying as it stops people from selling."
Sawicki says another contributing trend is that more people are living at home with their parents.