Get free access to our world class MLS search tools, save your favorite listings, create saved searches & much more!

US housing market has returned to normal say academics

Posted by Julie Wright on Monday, June 19th, 2017 at 9:45am.


It’s been a year since the start of the Great Recession but it appears that the slow recovery of the US housing market is almost complete.

Most markets have returned to normal according to an analysis by the Joint Center for Housing Studies of Harvard University.

US housing market has returned to normal say academics

Its State of the Nation’s Housing report shows that housing demand and prices are rising along with residential construction and the number of distressed homeowners has fallen sharply.

However, it’s not all good news as the well-documented tight supply hindering many markets is hitting affordability and supply of new homes continues to lag demand.

“While the recovery in home prices reflects a welcome pickup in demand, it is also being driven by very tight supply,” says Chris Herbert, the Center’s managing director.

Construction has grown for the past 7 years but remains below the 10-year average for any decade since at least the 1970s, especially for single-family homes.

“Any excess housing that may have been built during the boom years has been absorbed, and a stronger supply response is going to be needed to keep pace with demand—particularly for moderately priced homes,” added Herbert.

Meanwhile, the downward trend of homeownership rates may be levelling off, the data shows, and the Center is forecasting a sharp rise in demand in the years ahead, despite challenges of affordability.

This will be driven by first-time buyers from the younger end of the Millennial generation reaching their late 20s and early 30s and deciding that it is time to buy a home. Some will choose to rent, and this sector is also predicted to soar.

The report suggests that the demand may differ from that of previous generations reaching this life-stage. That’s due to Millennials being the most racially and ethnically diverse generation in the nation’s history.

Demand will grow for a broad range of housing types and locations and Baby Boomer will continue to play an active part in the market, with investments in both new and existing homes as their needs change with aging.

“Meeting this growing and diverse demand will require concerted efforts by the public, private, and nonprofit sectors to expand the range of housing options available,” says Daniel McCue, a senior research associate at the Center. 

 

 

by Steve Randall19 Jun 2017
http://www.mpamag.com/market-update/us-housing-market-has-returned-to-normal-say-academics-70843.aspx

 

 

Mastura Roberts
(702) 919-5400
offers@greatlasvegashomes.com

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

8 Things Home Sellers Should Never Reveal (Except To Their Realtor)

When homeowners decide to sell, they may find themselves justifying their choice to anyone who’ll listen. But, as the old saying goes, “Loose lips sink ships.” In today’s world where sharing is the norm, sometimes keeping your rationale for making a move all to yourself is the right move....

“But my Zestimate is higher than that”: 11 Things Sellers Should Know About Zillow's "Zestimate" calculations

Key Takeaways         Zestimates do not take the finishes or updates into account -- the insides of the properties.         Agents should describe to sellers how the Zestimate is calculated, and they can use the explanations on Zillow's own...

Residential Resale Report - October 2017

The Southern Nevada economy continues to expand, and the population base has responded accordingly. An influx of new residents has helped bolster demand in the housing market. With strengthening conditions experienced throughout 2017 expected to continue, similar housing supply-demand dynamics are likely to follow. In...

December: The Black Friday of Real Estate

Savvy buyers know: the month of the December is THE very best time of the year to pick up deals on real estate in Las Vegas! Most markets across the United States have a much longer "slow" season for real estate purchases. In the southern sunbelt, which is traditionally snowbird country, the summer months are the best...

Agents sell homes for more than FSBOs: study

Contradicting previous research, new study finds FSBOs sell at discount   Key Takeaways Agents tend to achieve higher sales prices for properties than comparable FSBO listings, enough to offset their commission fee, according to a recent analysis. Academic research has often cast dou...

Leave a Comment

Have a Question?

Contact Us

Follow Us