Tight us housing investory threatens sales

Tight housing inventory is threatening the rate of property sales in the US.

The country's housing market has built up a strong head of steam in the last year, with surging sales and limited supply pushing up prices. But that limited stock is starting to take its toll upon momentum, slowing down the number of transactions.

"The lack of inventory is a big obstacle for the housing market right now," Jed Smith, managing director of quantitative research for the National Association of Realtors, tells AOL Real Estate. "It becomes a supply and demand issue; without more homes available, home prices will continue to rise, which is bad news for home buyers."

Price growth is expected to remain moderate in 2014, with a 5 per cent rise forecast across the 12 months. But Smith warns that if prices rise higher, buyers could be priced out of the market.