The National Association of Realtors Chief Economist Lawrence Yun updated the brokers last week on what is happening with the real estate market so far and what he predicts will happen in the future.
The big takeaway is that inventory supply is STILL at an all time low and we do not have enough housing being built to satisfy the demand. The main driver of pricing is if there is high demand and low supply then it's a sellers market.
They do not see any crash in housing because this is not the same scenario as 2008. There are not a lot of layoffs, there are no subprime loans and there are no mortgage delinquencies or foreclosures (below 1%). Therefore people are not hurting to sell their homes and with the buildup of equity, most sellers are making money when they sell.


The final takeaway is that we may have see the high's of the mortgage rates and fluctuations may be ahead at least for the immediate future. But by the end of the year, they are hoping for mortgage rates for the 30 year fixed to return to 5.5% .
Commentaires