News & Commentary: Economy Articles
Amidst contradictory economic news, homeowners’ wealth is rising.
Lawrence Yun examines how increases in various elements of the consumer price index could affect housing in the near term.
With mortgage rates likely to approach 5 percent next year, normalized underwriting standards are crucial.
Prices are increasing quickly, though that may not always be the most healthy development for the economy. Also, banks may soon loosen overly strict requirements, but a choke point remains in new-home construction.
Economists who predict underperformance in real estate based on Baby Boomers downsizing are overlooking another huge demographic trend.
Modest growth in the economy and an improving job picture bode well for both residential and commercial real estate in 2013.
The market is looking much improved today, with home sales and prices heading up. But within this improvement are the seeds of a long-term challenge: falling inventories.
If regulators fail to restore rules that honor the important roles of free enterprise and private property ownership, some may be unable to climb the economic ladder.
The inventory of homes for sale peaked at 4.5 million units in 2007, fueling the big drop in home prices that we’ve seen. Today, we have the opposite problem: Only 2.49 million homes are for sale, even though demand has risen some 10 percent from a year earlier.