NAR CHIEF ECONOMIST ADDRESSES SENATE BANKING COMMITTEE ON THE STATE OF HOUSING IN AMERICA
By RISMedia Staff July 21, 2022
Lawrence Yun, chief economist for the National Association of REALTORS® (NAR), today told the U.S. Senate Committee on Banking, Housing, and Urban Affairs that he does not foresee a nationwide decline in home prices despite indications that price growth is set to slow, NAR announced Thursday. Yun testified that the potential for weaker sales should increase available inventory in some markets, but not enough to diminish persistent affordability constraints which, for many Americans, have kept homeownership out of reach in recent years.
“In the near term, I do not expect the situation to change appreciably,” Yun said Thursday. “Historic undersupply in the market, combined with continued demand, will likely drive ongoing issues with affordability for many Americans.
“Any short-term price adjustments, if they occur, will be less consequential compared to the immense longer-term housing affordability challenges we face as a country.”
Thursday’s hearing, Priced Out: The State of Housing in America, comes as the nation confronts a 6-million-unit housing shortage, NAR said. This decades-in-the-making phenomenon has helped sustain year-over-year price growth for a record 124 consecutive months. A study of other circumstances in the market is also particularly compelling given COVID’s impact on U.S. housing and recent, dramatic fluctuations in mortgage interest rates. Read More
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