Could a housing market slowdown, or worse a housing market crash, be looming? If Lawrence Yun’s, National Association of Realtors chief economist, analysis is correct, the answer is a resounding “no”. In fact, the slowdown in the housing market that some areas are experiencing is due to “insufficient supply”, not a lack of demand by buyers.
In an article published by Realtor Magazine, many positive signs for the housing market are present. For example, the article states “home price growth remains strong in markets across the country—about 5 percent on a nationwide basis so far this year”.
However, the negative effect of the lack of housing supply is that the prices are being driven into price ranges that price some buyers out of the market. A solution to that issue,the article notes , would be to have builders increase the supply of homes available.
Read the entire article.