The following is NAR Chief Economist Lawrence Yun’s reaction to this morning’s S&P/Case-Shiller release on February home prices:
“There is no let-up to rising home prices. The Case-Shiller Index and National Association of Realtors® median home price both show gains of roughly double the average wage growth. Even as the tightening job market is starting to boost incomes, those looking to buy are facing a double whammy of fast rising home prices and higher mortgage rates. The way to make housing more affordable is to build more homes, particularly smaller-sized entry level homes and condominiums.
Regulatory relief to small-sized community banks will also help boost construction loans. Local governments need to speedily approve housing permits. And there needs to be a way to more easily acquire trade skills like carpentry, wood framing and other construction specialties for those wanting to earn good middle-income salaries without having to go to college. Such actions will boost economic growth and provide better access to homeownership.”