Lawrence Yun, chief economist of the National Association of Realtors (NAR), recently made waves by suggesting on the financial news program ‘Squawk Box’ that… Here are his answers as to what’s happening in today’s housing market. His insights highlighted ongoing challenges, particularly concerning rising home prices and issues related to housing affordability.
In his segment, Yun went beyond the big numbers and offered context on what it all means and how the housing market is changing. With high inflation, high interest rates and other negative macroeconomic factors, home prices inexplicably are still climbing making an almost insurmountable barrier for many would be homebuyers. He underscored the number one challenge right now is rising prices. Countless people and families are left unable to enter the housing market due to this problem.
Yun’s appearance on CNBC’s ‘Squawk Box’ raised these nuances when talking about the emotional arguments and math at play with housing affordability. He emphasized that as home prices soar, more and more Americans are getting excluded from being able to buy their own home. This is, of course, made worse by stagnant wage growth coupled with new higher interest rates from the Fed, which has significantly crimped buyers’ purchasing power.
The chief economist outlined that the NAR closely monitors these trends, as they have significant implications for both the economy and the real estate market. Yun is known for his down to earth economic analysis. His expertise allows him to provide valuable insights on how increasing home prices may affect future buying activity.
Yun focused on larger economic indicators that affect the national housing market. He added that some areas will see faster appreciation than others. The continued national trend has to be alarming. This disparity further complicates the landscape for potential homeowners, who may face uneven opportunities based on location.
Yun once again called on lawmakers to make improving the affordability of housing their top priority. He’s a zealous advocate for proposals that make it easier for more people to get into the housing market. This collective effort will help create a more equitable landscape for homeownership.