The following is NAR Chief Economist Lawrence Yun’s reaction to today’s reports on the U.S. homeownership rate in the third quarter and August home prices (S&P/Case-Shiller).
“The American Dream of home ownership remains elusive, as the third quarter figure shows little change in the overall rate. The reason is simple. There is just not enough supply of homes to fully satisfy the desire to own. The lack of inventory has pushed up home prices by 48% from the low point in 2011, while wage growth over the same period has been only 15%.
The latest Case-Shiller constant quality price index further affirms strong price gains (7% in August), which is the third consecutive month of accelerating gains from already fast appreciating conditions.”