The following is NAR Chief Economist Lawrence Yun’s reaction to this morning’s S&P/Case-Shiller release on September home prices:
“Home prices, after multiple years of fast growth, still show no signs of cooling because of the ongoing housing shortage in much of the country. The latest Case-Shiller price growth of 6.2% on a nationwide basis marks the strongest rise in over three years. This fast appreciation over income growth is not sustainable over many years.
Housing demand is clearly rising from the improving labor market, but supply is still not kicking higher. Homes for sale are quickly going under contract, and overall existing inventory has fallen for 29 consecutive months (on a year-over-year basis). Either demand will chocked off from weakening affordability, or more robust construction needs to take place to calm home prices. The latter is the much preferred outcome, and would be a win for homebuyers, a win for homebuilders and win for faster economic growth.”