19 Nov Housing Market A Decade After The Crash
Following the financial crisis and housing crash, it was thought that Americans may stop aspiring to homeownership and would no longer see the housing market as a solid investment and reliable creator of wealth. After all, homeowners who saw the values of their homes drop might become nervous about selling. And those who hadn’t yet bought a home may have considered themselves lucky for waiting. And yet, a decade later, the market has largely recovered and demand from buyers is running high again.
Lawrence Yun, the National Association of Realtors’ Chief Economist, says that is because of reforms enacted after the housing market crash. “Over the past 10 years, prudent policy reforms and consumer protections have strengthened lending standards and eliminated loose credit, as evidenced by the higher than normal credit scores of those who are able to obtain a mortgage and near record-low defaults and foreclosures, which contributed to the last recession,” Yun said. Today, market conditions are fueled, not by a lack of a demand for homes, but by a lack of enough supply to meet the growing level of demand. A shortage of supply is a better problem to have than a shortage of demand. The good news is Yun sees even more improvement on the horizon. His forecast for the next year includes rising inventory, moderating price growth, and more home sales as affordability conditions ease and make homeownership even more attractive to prospective home buyers. Existing home sales are forecast to rise two percent in 2019, while home prices are expected to rise by 3.5%, Yun said.
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