Housing Market Lawrence Yun

• November 30, 2022
• realestate
• Announcements, Business & Markets, Fed, Interest Rates, Politics & Economy, Rates, Real Estate, Real Estate Finance, Recession, World News, Your Real Estate Life

Home prices declined by 30% during the Great Recession of 2008-2009.

The housing market is on much solid foundation this round. Given so much news media coverage about the potential for home price pullback, it is worth visiting the fundamentals related to the current cycle versus the last.

– 20 more jobs today and no net job losses in recent employment data. (Job gains running ahead of job cuts so the net is slightly positive)
– no shady self-imploding mortgages with current borrowers needing to meet the ability to repay standards
– fewer new single-family home construction
– far fewer listings on the market
– historically low mortgage delinquencies and foreclosures

A job cutting recession if it were to occur in 2023 will weaken some of the data. But we have a bizarre labor market currently with nearly twice as many job openings as there are unemployed people searching for a job.

Chief Economist at National Association of REALTORS