REAL ESTATE TRENDS
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Read more about current Real Estate trends below.
Lawrence Yun, the National Association of Realtors chief economist, predicted this year's housing market will see declining sales, rising home prices and an American Dream increasingly out of reach. Mortgage rates have been rising and that has historically meant a decline in home sales, he said, but not a big decline, except for the housing bust of the Great Recession of 2008.
Still, higher mortgage rates and a severe lack of inventory pushing up home prices has meant housing costs have increased by 55 percent in the past year: from a monthly mortgage payment of $1,686 on a $400,000 loan to a monthly payment of $2,606 on a $480,000 loan, according to Yun.
“So a question from a consumer is: Are we in a housing market bubble? One response you can say is clearly, we’re not in an excessive debt situation,” Yun said. The current inventory shortage is a result of “excessive” home buyer demand and 15 years of under-building after the Great Recession, according to Yun.“We need more construction,” he said, blaming land use and zoning regulations, a construction labor shortage and a lack of available lots. Overall, Yun forecasts a return to a pre-pandemic market — which may feel like a significant drop given the go-go days of the past two years.
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