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
This year I decided to take a cruise to the Caribbean for my birthday, and I saw some pretty amazing real estate along the way! I thought it would be fun to share some photos of the luxury custom homes I saw overlooking the emerald blue waters surrounding Tortola, Antigua, Barbados, St. Lucia and St. Barts. Our first...
An historical remnant of Las Vegas’ colorful heyday made the news this week: the 15,000 square foot Liberace Mansion. Built in 1962, Liberace purchased the mansion in 1974 and made it uniquely his own. Containing only two bedrooms but a whopping 10 bathrooms, the mansion still exhibits evidence of Liberace's original...
Casa de Shenandoah, former residence of Las Vegas icon Wayne Newton since 1968, has been "reorganized" out of bankruptcy and is now up for sale for a modest $70M! The property is located just down the street from the Primm Estate, which is also currently up for sale, though only for a mere $16,500,000. Here's an aerial...
October 2017 Single Family Residential (SFR) closed sales were up 1.6% from September and up 13.2% compared to October 2016. Year to date 2017 closed sales are still up 9.8% over 2016. The median closed sales price of a SFR dipped to $263,000 while the average closed sales price of an SFR ju...