Existing-home sales are poised to see their best year in a decade, but low supply and affordability still threaten to keep the homeownership rate down, according to the National Association of Realtors.
Lawrence Yun, chief economist for the NAR, recently presented his 2017 midyear forecast. According to Yun, the first quarter saw the best quarterly existing-home sales pace in 10 years with 5.62 million. Yun said he expected that pace to stay on track and finish around 5.64 million, 3.5% above 2016 and the best rate since 2006. The national median existing-home price is also expected to rise around 5% this year, according to the NAR.
“The housing market has exceeded expectations ever since the election, despite depressed inventory and higher mortgage rates,” Yun said. “The combination of the stock market being at record highs, 16 million new jobs created since 2010, pent-up household formation and rising consumer confidence are giving more households the assurance and ability to purchase a home.”
While sales are running at a 10-year high, Yun believed that with the healthy labor market, they should be even higher. However, with prices rising and too few listings in the lower- and mid-market ranges, many prospective homebuyers are finding themselves priced out.
“Limited lots, labor shortages, tight construction lending and higher lumber costs are impeding the building industry’s ability to produce more single-family homes,” Yun said. “There’s little doubt first-time buyer participation would improve and the homeownership rate would rise if there was simply more inventory.”
And while Yun projected that housing starts to jump 8.4% to 1.27 million this year, that’s still well under the 1.5 million new homes needed to offset sluggish building in recent years.
Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052
With over 30 years of experience helping families call Las Vegas "home!"
Related Blog Posts
During the recent mortgage melt down, banks had suspended all foreign national financing except for Canadians buying second homes in the United States. But as of last week, foreign national mortgage financing is once again available for citizens of other countries wanting to buy vacation homes in Las Vegas. Most Las Ve...
Gross Domestic Product, the broadest measure of economic activity, climbed to a more normal 3.1 percent in the second quarter, up from 1.2 percent in the first quarter. Home loan rates bounced around due to tensions with North Korea, debt ceiling debates and devastating hurricanes, but they remained just above all-tim...
Wei Chen-Goldman, one of the very experienced agents on the #1 Tonnesen Team at Berkshire Hathaway HomeServices Nevada Properties has just listed another beautiful home in the gated, age-restricted community of Sun City Anthem. This popular one story “Lincoln” home is 2,096 square foot and has a 2-car ga...
You can unknowingly sabotage your home financing goals by making some obvious and not-so-obvious moves with your finances. Check out the list below to see if you know the top 10 things NOT to do when you are in the process of buying a home or refinancing. Do Not: Transfer money between accounts, unless receiving co...
Typically my clients are relocations and many have never actually been in their home until the day of move in. That can create a unique situation such as timing for arrivals of delivery trucks, buyers not being in the city at the time of close, pet-friendly hotels, etc… I provide information necessary to assist...