In a new column, chief economist for the National Association of Realtors (NAR) Lawrence Yun asks the question: "Boom Or Bust For Spring Homebuying?"
Writing for Forbes, Yun says that despite the recent turnaround in home sales, several data points show better conditions for homebuyers in spring: sentiment is rebounding, according to early readings of NAR confidence data, applications for home loans have been increasing, and the number of contract signings to buy grew 4.6 percent in January 2019.
Home prices reached an all-time high in most markets in 2018. Homeowners benefitted greatly as a result, with their overall net wealth rising by a cool $1 trillion. A typical homeowner’s wealth is estimated to have reached $254,000 while that of a typical renter stood at only $5,000. Looking ahead, home values are poised to advance further in 2019, albeit more modestly. However, home sales slumped badly in the closing months of last year. Persistent sales declines are nearly always associated with dampening home prices and homes sitting on the market for a lengthier time.
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