NAR sees pent-up demand waiting on lower mortgage rates, better sentiment

The U.S. housing market is building “significant” pent-up demand that could be released if mortgage rates ease, inventory improves and consumer confidence rebounds, National Association of Realtors’ (NAR) chief economist Lawrence Yun told attendees Friday at NAR’s NXT in New Orleans. Yun contrasted today’s sales environment with the year 2000, noting that the U.S. population has grown from 281 million to 350 million and payroll jobs from 132 million to 159 million over that period. Housing wealth has ballooned from $7 trillion to $35 trillion, yet existing-home sales are tracking near 4 million this year, well below the 5.2 million homes sold in 2000, he said, citing NAR data. “Affordability is tough, but people’s incomes are rising, and if somehow mortgage rates go down, think about the potential housing demand that could be released to the marketplace,” Yun said. On the supply side, Yun said inventory has risen as sales have slowed. Months’ supply is now at its highest level since 2015, and the median home took 33 days to go from listing to contract in September, according to NAR. “Homes are staying on the market a little longer than before,” Yun said. “With longer days on market...