Pent Up Demand, Young Buyers To Spur Sales

According to economists and industry experts gathered at a residential real estate forum organized by the National Association of Realtors, the housing market is trending upward, though there are a combination of factors that have been holding it back in recent months. Lawrence Yun, NAR’s chief economist, said rising home prices and mortgage rates, along with low inventory and tight credit, have slowed household formation despite a large pent-up demand built up over years of below-normal home sales. The slowdown was then made worse by severe winter weather earlier this year, which dampened first quarter sales across much of the country. Despite this, analysts expect sales to improve through the end of the year and into next. Those expectations are based on demographic data and recent polls showing a majority of Americans want to own their own home. And, with nearly three million more young adults living with their parents in 2012 than in 2007, it’s only a matter of time before that demand results in higher home sales. Eric Belsky, managing director of the Joint Center for Housing Studies at Harvard University, said – because household formation numbers are at least a million households below where they should be – there could be a notable uptick later this year. More here.

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