NAR’s Lawrence Yun: Home sales stuck near 4M for 4th year
Existing-home sales fell 2.4 percent in June, but Chief Economist Lawrence Yun's take on the numbers goes deeper than the topline data. He says the market hasn't been this stuck since 2008 and without a foreclosure crisis to explain it.
Existing-home sales have been hovering around 4 million for the fourth consecutive year, according to Lawrence Yun, Chief Economist at the National Association of Realtors. This stagnation is notable, especially when compared to the pre-2008 housing market boom. What's concerning is that this plateau hasn't been driven by a foreclosure crisis, which has historically impacted home sales.
From a construction perspective, this means that builders and contractors may not see a surge in new projects driven by existing home sales. The flat sales numbers also suggest that there may not be a significant increase in demand for construction materials and labor in the near future. However, it's essential to keep in mind that 4 million existing-home sales is still a respectable number, indicating a steady level of activity in the housing market.
As the industry watches for signs of growth, it's crucial to monitor factors that could influence existing-home sales, such as interest rates, housing affordability, and economic conditions. The upcoming months will provide more insight into whether the market can break out of its current stagnation. Construction companies and suppliers should keep a close eye on these trends to adjust their strategies and prepare for potential changes in demand.
Originally reported by inman.com. ConstructionNews adds analysis for real estate & property readers.