No Reason to Fear a Housing Market Downturn

• Strong homebuyer demand and tight lending standards should prevent the U.S. housing market from another crash, National Association of Realtors Chief Economist Lawrence Yun says.
• Yun projects that home prices will grow by 5 percent by the end of 2018 and 3.5 percent in 2019.
• A Morgan Stanley housing market expert believes that limited affordability is the biggest problem facing the U.S. housing market.

The U.S. housing market does not appear to be headed for another crash, though a lack of affordability remains problematic, both nationwide and in California.


In a new report from the National Association of Realtors, Chief Economist Lawrence Yun forecasts that home prices will grow by 5 percent in 2018 and 3.5 percent in 2019. Existing home sales are expected to inch down to 5.46 million units in 2018, a year-over-year decline of 1.0 percent.


Falling sales are the result of rising prices and inventory shortages and are not indicative of reduced homebuyer demand, and that’s one reason Yun does not foresee a downturn on the horizon. Weak buyer demand is more typical when slowdowns occur, so Yun notes that the nation’s current housing supply-and-demand imbalance is actually a much better problem to have. Read full article @elizabethGkilgore




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