This just in: National Association of REALTORS® (NAR) Chief Economist Dr. Lawrence Yun has declared the "housing recession" to be over.
“This week, with inflation seemingly under control and housing demand holding strong against higher mortgage rates, Yun is officially declaring this recession over, with the expectation that real estate is on an upward trajectory.”
Despite potential pitfalls like a recent U.S. government credit rating downgrade impacting mortgage rates, data suggests that housing is primed for a rebound, driven by high buyer demand, strong new-home sales, and a resilient economy. Additionally, Yun expects lower rents to help ease inflation, potentially leading the Federal Reserve to cut interest rates.
“For those who are familiar with—or lived through—the 2008 financial crisis, this most recent downturn is relatively short and shallow by comparison,” said Yun, with a handful of mostly regional price declines and about two years of negative housing GDP growth. But in much the same way the decline in housing activity was a complex, multi-layered interaction, a rebound will likely be anything but straightforward.
While inventory remains limited, strong new-home sales and policy changes could improve supply. Additionally, cash buyers remain high, indicating consumer readiness to buy and sell homes.
To learn more about the state of the market, click here to read the full RisMedia article.
