March/April 2017 Market Pulse

A glimpse at the current state of the housing market.

March 15, 2017

Price Increases Are Challenging Buyers

As home prices and interest rates rise, more buyers, especially first-time purchasers, are under pressure. Home prices rose sharply in the last quarter of 2016, fueled by low inventories in many parts of the country, particularly in the entry-level home price range. Federal policies that restrict access to credit, including suspension of a planned reduction in FHA mortgage insurance premiums and high guarantee fees by Fannie Mae and Freddie Mac, will add to affordability woes.

 

 

 

More Renters Change Their Status

The share of former renters who have taken the plunge into homeownership has slowly but steadily increased over the last two years. The ex-renters include first-time buyers and so-called boomerang buyers who have reentered the market. Rising rents have contributed to the increasing interest in home buying.

 

Source: NAR Research

 

Lawrence Yun
Chief Economist and Senior Vice President of Research at the National Association of REALTORS®

Yun oversees and is responsible for a wide range of research activity for the association including NAR’s Existing Home Sales statistics, Affordability Index, and Home Buyers and Sellers Profile Report. He regularly provides commentary on real estate market trends for its 1.3 million REALTOR® members.

Dr. Yun creates NAR’s forecasts and participates in many economic forecasting panels, among them the Blue Chip Council and the Wall Street Journal Forecasting Survey. He also participates in the Industrial Economists Discussion Group at the Joint Center for Housing Studies of Harvard University. He appears regularly on financial news outlets, is a frequent speaker at real estate conferences throughout the United States, and has testified before Congress. Dr. Yun has appeared as a guest on CSPAN’s Washington Journal and is a regular guest columnist on the Forbes website and The Hill, an “inside the beltway” publication on public affairs.

Dr. Yun received his undergraduate degree from Purdue University and earned his Ph.D. from the University of Maryland at College Park.